GEORGIA — The Georgia Policy and Budget Institute (GBPI) is disappointed in yesterday’s partial preliminary injunctions issued by US District Courts in Kansas and Missouri that temporarily block student loan borrowers from accessing crucial benefits under the Biden-Harris Administration’s Student Aid Verification for Equity (SAVE) Plan. These injunctions will prevent reduction in monthly payments and student loan forgiveness, directly impacting borrowers across Georgia.
Statement by Ashley Young, Education Analyst, GBPI
“These injunctions hinder efforts to address racial inequities exacerbated by student loan debt in Georgia. Georgia ranks third in the nation for student loan debt per borrower, with over $69 billion owed and Black women carrying the most student debt of any racial/ethnic group. Black women borrowers take out the highest amount of student loans to attend college and then suffer from wage discrimination during the repayment process. As a result, Black women may stand to benefit the most from the SAVE Plan. Improving income-driven repayment plans and providing urgent student loan debt relief is necessary for ensuring greater racial equity, better economic stability and access to higher education for future college students.
Statement by Staci Fox, President and CEO, GBPI
“The partial preliminary injunctions from US District Courts in Kansas and Missouri undermine efforts to alleviate the heavy burden of student loan debt on borrowers in Georgia and beyond. These rulings will most certainly exacerbate financial disparities and hinder stability for those struggling to meet basic needs. The positive impact of the program has been demonstrated as over 65,000 Georgians have already been identified as eligible to have their loans forgiven (a total of $3 billion in debt at an average of $46,000 per borrower).
Instead of pushing litigation against beneficial policies like the SAVE Plan, the state could prioritize making college more affordable through passing need-based aid through the legislature. GBPI remains steadfast in its commitment to advocating for policies that promote economic justice and education equity and will continue to monitor the judicial outcomes as we await future developments in these two US District Court cases.
