Student debt should be canceled because 'the sky didn't fall and our economy didn't implode' during the loan payment pauses, Democratic lawmaker says

• A Data for Progress poll found the majority of Americans want some or all of student debt canceled.
• Citing that, Representative Mondaire Jones said President Biden should cancel student debt.

President Joe Biden has extended the pause on student-loan payments three times already, and there's no reason why he shouldn't go all the way and cancel student debt for every federal borrower.

At least, that's what New York Rep. Mondaire Jones thinks.

Recent polling from Data for Progress and the Student Borrower Protection Center found the majority of voters support canceling some or all student debt. According to a survey from February 4 to 6 of 1,159 likely voters, 63% of respondents support broad relief — 25% said all student debt should be eliminated while 38% said a certain amount of debt should be wiped out.

Citing those results, Jones wrote in a Monday blog post that student debt cancellation "is overwhelmingly popular with voters and would deliver real, meaningful relief for millions of Americans."

"The sky didn't fall and our economy didn't implode" during the past student-loan payment pauses, Jones said. "Americans who found themselves with disposable income began putting it towards food, car payments, and housing, among other things, actually bolstering the economy in the process."

"A third extension would be welcome," Jones added. "But we can't keep slapping Band-Aids on a deepening wound. The cycle of indefinite postponement is as unsustainable as the debt itself. And if the country can afford to keep putting off these loan repayments, we can afford to cancel the debt altogether."

Student-loan payments have been on pause since March 2020, and given the repeated extensions of the pause, Democratic lawmakers like Jones have argued that if Biden can afford to keep pushing back the payment restart date, he can afford to wipe out the $1.7 trillion student-loan portfolio. The argument for Democrats is broad student-loan relief would be an economic stimulus, benefitting low-income borrowers most.

Insider previously analyzed how the lack of student-loan payments during the pandemic has impacted the US economy, and the consensus from a number of experts was that overall, the economy didn't need those payments to stay afloat.

Charlie Eaton, economic sociologist and researcher at UC Merced and co-author of a Roosevelt Institute study that found student-debt cancellation is progressive, told Insider that "one of the great features of today's economy" is the Great Resignation as it means people feel confident they can find a job that will pay them well — and resuming student-loan payments would impede that.

"If people are trying to get back into the labor force, but you can't get a home loan or a car loan, or can't buy a car, it makes it harder for folks to go find jobs that they are willing to take," Eaton said. The National Association of Realtors recently found more than 51% of borrowers are delaying a home purchase because of their debt.

Not only will the absence of student-loan payments give Americans flexibility with employment — it also has allowed them to pay off other burdens. One borrower, for example, previously told Insider that the lack of monthly payments on her student loans saved her $377 a month, which allowed her to fully pay off the medical bills from having a baby.

But progressive and conservative lawmakers and experts are split on the true impact continued student-loan relief will have on the economy. Arkansas Sen. Tom Cotton tweeted last week that another payment pause extension is "a terrible idea," echoing top Republican House Education leader Virginia Foxx, who recently decried another extension as "a troubling trend toward blanket student loan forgiveness, which would be a massive mistake, with major consequences for borrowers and taxpayers."

Biden has not yet indicated whether another extension, or broad student-loan cancellation, is coming, but Democrats say it's time for him to fulfill a campaign pledge and give borrowers the relief they deserve.