A Senate bill could see student debt cancellation made illegal for those who undertake certain undergraduate programs.
According to the text of the Federal Aviation Administration Reauthorization Act, those who undertake “undergraduate flight education and training programs” while using federal loans would not be permitted to use student loan cancellation offers brought in by the Joe Biden administration if it is passed.
In 2023, the White House introduced the Saving on a Valuable Education (SAVE) plan to lower student debt and offer more affordable repayment plans, and in some cases forgive loans altogether.
The wording of the bill refers to Stafford loans, “a subsidized or unsubsidized Federal Stafford Loan that was made to students attending schools that previously participated in the Federal Family Education Loan (FFEL) Program,” according to a definition by Federal Student Aid. Such loans have not been administered since 2010.
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“The secretary, the secretary of the treasury, or the attorney general may not take any action to cancel or forgive the outstanding balances, or portion of balances, on any federal direct unsubsidized Stafford loan, or otherwise modify the terms or conditions of a federal direct unsubsidized Stafford loan, made to an eligible student, except as authorized by an act of Congress,” the bill text reads.
It was introduced by Democratic Senator Maria Cantwell of Washington, and is cosponsored by Ted Cruz, Tammy Duckworth and Jerry Moran. Newsweek contacted Cantwell for comment via the form on her website outside of normal working hours.
Campaigners have said the bill, if passed, could pave the way for removing student debt cancellation for other professions.
“Congress is set to reauthorize appropriations for the Federal Aviation Administration. Routine stuff — except slipped in 1,000 pages of bill text is language banning student debt relief for borrowers who completed flight education programs,” the Debt Collective, a union for debtors, said on X, formerly Twitter.
Congress is set to reauthorize appropriations for the Federal Aviation Administration. Routine stuff—except slipped in 1,000 pages of bill text is language banning student debt relief for borrowers who completed flight education programs.🚨
They’re trying to make relief illegal. pic.twitter.com/Iqf7oMA7WF
— The Debt Collective 🟥 (@StrikeDebt) April 4, 2024
“Make no mistake, this is a test flight,” Debt Collective co-founder Astra Taylor wrote on X. “If they can make student debt cancellation illegal for some people, they will do it for others. Student debtors and their allies need to stick together and stick up for each other.”
The bill comes up against ongoing arguments between Republicans and Democrats over student loan forgiveness. A band of GOP attorneys general have filed a federal lawsuit seeking a temporary injunction to block SAVE. It is led by Kansas Attorney General Kris Kobach, who has argued the current administration has “implemented another version” of the student-loan forgiveness plans formulated prior to SAVE.
Attorneys general from Nebraska, Iowa, Texas, Alabama, Alaska, Idaho, Louisiana, Montana, South Carolina and Utah are all involved in the lawsuit.
According to a statement seen by The Associated Press, the Education Department said: “The Biden-Harris administration won’t stop fighting to provide support and relief to borrowers across the country—no matter how many times Republican elected officials try to stop us.”
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.