Don’t let student debt push children into poverty!
The Department of Education and the United States Senate
We’re still in the middle of a global pandemic, but the Department of Education and Congress are expected to allow federal student loan repayments to resume on February 1, 2022.
This will be disastrous for struggling families who are in debt for simply wanting to get an education, but there’s an even more catastrophic impact coming: millions of parents will lose access to thousands of dollars in child tax credit payments when they file their taxes.—These payments--that are used for food, rent, and gas money—will be unavailable to families considered to have defaulted on their student loans.
One of the most important victories the Biden administration secured to-date is the child tax credit. Because of this win, over three million children could be lifted out of poverty. But all of this incredible benefit is at risk for people who are behind on their student debt.
Sign the petition demanding the Department of Education and Congress work together to continue to send the child checks to families—including those who cannot afford to keep up with crippling student debt. If we do not act, the big child credit payments coming in tax refund checks will be seized from families with defaulted student loans and redirected to the Department of Education—meaning they will never reach many of the families who need it most.Sponsored by
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The Department of Education and the United States Senate
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The child tax credit has lifted three million children out of poverty, and extending it will lift even more. But this historic effort is at risk because of student loan debt. As it currently stands, families with one parent whose federal student loan debt is considered in default will have their child tax credit seized and sent to the Department of Education.
More than 9 million Americans are currently unable to pay their student loans and half of them are estimated to be responsible for dependents. Experts say that borrowers in default are overwhelmingly from low-income, low-wealth families and are disproportionately people of color and first-generation college students. It’s cruel and callous to tell these struggling families that their existing, unaffordable federal student debt is the reason they will not be able to receive child tax credits to pay for essentials including food, rent, and gas money to get to work.
There are a number of alternatives to driving more families deeper into poverty.
One option is that the Senate can amend the pending Build Back Better bill to add language stating that all Child Tax Credit payments may not be reduced or offset because of someone’s existing student debt.
Another possibility is that the Department of Education can “cure” defaulted loans so borrowers can at least continue to receive the child checks to put food on the table and a roof over their head in 2022, and develop more long-term protections so that default doesn’t jeopardize access to family support.
Of course the Department of Education and Congress can also work together to build a pathway to eliminate all student debt because families benefit from being able to invest in their future.
Please join ParentsTogether and Student Debt Crisis Center in supporting families struggling to build a stable foundation for their kids and communities.