NAACP Calls on Department of Education to Suspend Student Loan Payments While Lower Court Cases are Pending
FOR IMMEDIATE RELEASE
June 27, 2024
Contact: Alicia Mercedes, amercedes@naacpnet.org
WASHINGTON – This week, a pair of federal judges in Missouri and Kansas halted progress for millions of student loan borrowers across the country. The judicial decision to enjoin different aspects of the monumental SAVE Program, a program designed to help individuals who make $32,800 or less annually, not only hinders the progress millions of borrowers enrolled in the program have made towards repaying their loan. The leaders behind these lawsuits appear to be targeting efforts aimed at providing relief to those struggling with overwhelming student loan obligations and potentially hindering access to higher education for individuals who lack the financial means to cover tuition costs outright.
Janette McCarthy-Wallace, NAACP Chief General Counsel shared the following statement:
"These lawsuits are only an attempt to gain political leverage at the expense of individuals burdened by significant student debt. For more than a century, the NAACP has advocated for equal educational opportunities and advanced access to a world-class education as a means for Black Americans to prosper financially and establish economic security for future generations. Student loan debt represents a formidable barrier to racial justice in the United States, a barrier exacerbated in the post-COVID-19 era. Due to disparities in family wealth and financial contributions to tuition and other expenses, young Black students bear a disproportionately higher burden of student loan debt compared to their White peers. We will continue to advocate for student loan debt relief until it is a reality for all."
The coalition of states and Attorneys General, which include Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio, Oklahoma, Kansas, Alabama, Alaska, Idaho, Iowa, Louisiana, Montana, Nebraska, South Carolina, Texas, and Utah, has initiated these legal actions challenging the Biden Administration's student loan relief initiatives. Four years after obtaining their bachelor's degrees, 48% of Black college graduates owe more on federal undergraduate loans than they initially borrowed, a stark contrast to only 17% of White graduates.
Despite lower earnings, as a result of significant wage gaps, Black student borrowers face higher monthly payments than their White peers. The NAACP joins other advocacy organizations in calling for the Department of Education to suspend student loan bills until these court orders no longer pose a threat to the rights of all borrowers under the current law and continue to disproportionately impact Black borrowers.
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About NAACP
The NAACP advocates, agitates, and litigates for the civil rights due to Black America. Our legacy is built on the foundation of grassroots activism by the biggest civil rights pioneers of the 20th century and is sustained by 21st century activists. From classrooms and courtrooms to city halls and Congress, our network of members across the country works to secure the social and political power that will end race-based discrimination. That work is rooted in racial equity, civic engagement, and supportive policies and institutions for all marginalized people. We are committed to a world without racism where Black people enjoy equitable opportunities in thriving communities.
NOTE: The Legal Defense Fund – also referred to as the NAACP-LDF - was founded in 1940 as a part of the NAACP, but now operates as a completely separate entity.