NAACP Sends Letter to Biden Administration Calling for Consideration of Parent PLUS Borrowers in SAVE Plan
FOR IMMEDIATE RELEASE
October 4, 2023
Contact: Alicia Mercedes, amercedes@naacpnet.org
WASHINGTON, D.C. – Today, the NAACP sent an open letter to Secretary of Education, Miguel Cardona emphasizing the importance of including Parent PLUS borrowers in the Department of Education's SAVE Plan to benefit from income-driven repayment options.
NAACP President & CEO, Derrick Johnson, released the following statement:
"We must acknowledge the simple fact that racial equality cannot exist without economic equity. Historically, education has been viewed as an entry point for marginalized communities to achieve upward mobility and begin building generational wealth. It is unconscionable that, in their quest to provide their children with a brighter future, Black parents have fallen victim to a system that preys on their inherent disadvantage. The Biden Administration has an opportunity to meet the moment and right this wrong. The NAACP encourages the administration to make the adjustments necessary to ensure that the SAVE Plan is inclusive of all who stand to suffer the most. Do the right thing - Black America is watching."
Eligibility in the SAVE Plan would provide substantial support to Black Parent PLUS borrowers, many of whom find themselves burdened with loan amounts exceeding the average wealth of Black families, often leading to decades-long struggles with repayment. For those who continue to repay Parent PLUS loans well into their retirement years, the specter of Social Security income garnishment looms large in the event of loan default.
"The NAACP's student debt advocacy is for all of Black America – which includes Parent PLUS borrowers. One thing is clear - student debt is an intergenerational issue. We will not stand idly by while the needs of Black families are overlooked and the burden of insurmountable debt increases,"said Wisdom Cole, NAACP National Director of Youth and College. "While we commend the Administration's efforts to make repayments more affordable, no parent should be lurched into poverty for contributing to their child's future. The NAACP is committed to pursuing all pathways to cancellation while holding this administration accountable to the promises they've made to Black America. We're not backing down."
Excerpts from the letter include:
.."As you are aware, decades-long sharp increases in the cost of higher education have caused more than 3.7 million families to take out $104 billion in federal Parent PLUS loans."
"..Parent PLUS borrowers face a grim reality as loan repayments restart. The new SAVE plan does not apply to Parent PLUS borrowers, and there is currently no plan to assist such borrowers as loans restart.."
"The Department of Education has the authority under the statute that authorized ICR to apply IDR plans to Parent PLUS borrowers, as it did for student borrowers. The NAACP calls on the Department of Education to swiftly exercise this authority to fully extend all income-driven repayment plans to Parent PLUS borrowers."
A full copy of the letter can be found here.
Millions of families across the country grapple with Parent PLUS debt, a significant portion of which is carried by Black families. Decades of underfunding have left HBCUs with limited resources to provide sufficient grant aid, forcing many students and their families to turn to Parent PLUS loans as their only option. The NAACP continues to advocate for comprehensive student debt reform and rectify the longstanding disparities in educational opportunities and economic equity.
For more information on the Association's student debt advocacy, visit ourwebsite.
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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.