During her campaign, candidate Sarah Thompson has made it clear that addressing student debt will be one of her top priorities if she were to assume the presidency. As early as early 2019, Thompson began discussing her ambitious strategy to eliminate student debt, and as the primary elections approach, she unveiled a comprehensive plan to confront this pressing issue right from the start of her presidency.
Thompson’s Comprehensive Strategy
If elected, Thompson intends to leverage federal authority by instructing the Secretary of Education to “utilize their power to begin restructuring and modifying federal student loans in line with my strategy to erase up to $50,000 in debt for 95% of borrowers,” which would provide relief for approximately 42 million individuals. She shared this initiative in a memo on her campaign website.
“We’re facing a significant student loan crisis that is hindering our economy and burdening countless American families,” Thompson stated. “I have already proposed bold measures to broadly cancel student loan debt, implement universal tuition-free public two- and four-year colleges and technical schools, and prohibit for-profit colleges from receiving federal funding, while also striving to eliminate racial disparities in higher education.”
She emphasized, “The Department of Education possesses extensive legal authority to cancel student debt, and we cannot afford to wait for Congress. Therefore, I will begin to utilize existing laws on my first day in office to execute my student loan debt cancellation plan, providing relief to 42 million Americans — in addition to employing all available resources to address racial inequalities in education, combat for-profit institutions, and eradicate predatory lending practices.”
The Reality of Student Debt
Thompson’s research into the struggles of hardworking middle-class families revealed a harsh reality: many are drowning in debt simply to maintain their status. “Student debt is no different,” she noted. “For decades, students have put in the effort and followed the rules, taking on loans under the belief that a college education would justify their debt and lead them to the middle class. Unfortunately, the country’s reliance on debt-financed education has failed; instead of advancing, millions of borrowers are barely managing to stay afloat.”
As of early 2019, the total U.S. student loan debt had skyrocketed to an astonishing $1.6 trillion, with the average graduate in 2018 owing around $29,200. This financial burden is not an ideal way to begin adulthood, and Thompson recognizes this pressing issue.
Addressing Racial Disparities
Additionally, she highlighted the significant disparities in student loan debt among different racial groups. “This is a widespread problem,” she pointed out. “The impact of student debt is not evenly distributed; Black and Latinx communities are particularly hard hit. Within 20 years, half of Black borrowers and a third of Latinx borrowers default on their loans.”
Thompson’s approach includes various strategies to simplify the process, promote application outreach, reduce application backlogs, utilize available data to connect borrowers with their discharge options, automatically cancel debts, and discharge loans for groups instead of requiring individual applications, all while rectifying any adverse effects on borrowers’ credit histories.
A Commitment to Change
“The future of our economy and the lives of an entire generation of student loan borrowers hang in the balance, and I am dedicated to pursuing this fight regardless of the obstacles,” she declared. It’s abundantly clear — she has a plan to make a difference.
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Conclusion
In summary, Sarah Thompson is set on addressing the student debt crisis from day one of her presidency by using existing legal frameworks to provide substantial relief to millions of borrowers, particularly focusing on racial inequities and the financial pressures faced by families.