Statement from Secretary Cardona on Speaker McCarthy’s Debt Ceiling Proposal

Today, U.S. Secretary of Education Miguel Cardona issued the following statement after Speaker Kevin McCarthy released a proposal that would cancel the Biden-Harris Administration’s targeted, one-time debt relief program:

“Today, Speaker McCarthy declared that he will force a catastrophic default and plunge America into recession unless he can claw back school relief dollars and prevent millions of hardworking Americans – including over 83,000 borrowers in his own district – from getting the student debt relief they need coming out of the pandemic. It’s a shame for students and working families across the country that Republican lawmakers, many of whom benefitted from hundreds of thousands of dollars in small business loan forgiveness, continue to fight hypocritically to deny critical student debt relief to millions of their own constituents. While President Biden, Vice President Harris, and I continue working to deliver much-needed relief to borrowers working to get back on their feet after the pandemic, Speaker McCarthy’s proposal tells us everything we need to know about what he and his allies value—tax cuts for the super rich, special interests, and big corporations over support for hardworking Americans.”

Overall, more than 40 million borrowers would qualify for the Biden Administration’s debt relief program. Nearly 90 percent of the benefits of the relief going to out-of-school borrowers would go to those earning less than $75,000 per year.

Additional information:

• In Kevin McCarthy’s district, 83,400 borrowers are eligible for student debt relief, 49,800 borrowers applied or were automatically eligible for relief, and 31,600 borrowers were fully approved for debt relief before special interests sued to block the debt relief program from moving forward. See additional congressional district data here.
• Rep. Kevin Hern had $1,082,302 in his own Paycheck Protection Program (PPP)loans forgiven. He represents 112,400 borrowers eligible for student debt relief.
• Rep. Matt Gaetz had $482,321 in his own PPP loans forgiven. He represents 75,000 borrowers eligible for student debt relief.
• Rep. Marjorie Taylor Greene had $183,504 in her own PPP loans forgiven. She represents 91,800 borrowers eligible for student debt relief.
• Rep. Vern Buchanan had $2,353,167 in his own PPP loans forgiven. He represents 95,400 borrowers eligible for student debt relief.
• Rep. Brett Guthrie had $4,416,574 in his own PPP loans forgiven. He represents 90,800 borrowers eligible for student debt relief.