Senate Democrats Urge Biden To Expand Student Loan Forgiveness Plan To Include Parents

President Biden's student loan forgiveness plan may offer millions relief from debt, but on Monday a group of Democratic senators urged the administration to expand eligibility even more to include parents.

The eight Senate Democrats urged the administration to extend eligibility of the student loan relief program to more Parent PLUS borrowers whose children received Pell grants after showing financial need.

Biden's current forgiveness program provides up to $10,000 in relief to federal student loan borrowers with incomes under $125,000 for individuals or $250,000 for couples. An additional $10,000 in relief, up to $20,000, will be given to Pell grant recipients.

The proposed program doesn't cover parents who took out federal loans to help put their children through college.

The Senators, led by Sen. Chris Van Hollen (D-Md.), wrote a letter to Biden that argued for inclusion of the student borrowers' parents who qualified for Pell grants.

The senators noted that since the parent borrowers qualified for the financial assistance, they "demonstrated significant financial need at the time they borrowed" and should be included in the president's proposed program.

"Like student borrowers who received Pell Grants, these borrowers also face numerous barriers to successful repayment and should receive relief," the senators wrote the president.

The senators also encouraged the president to make those borrowers eligible for the temporary expansion of the Public Service Loan Forgiveness program and upcoming plans for income-driven repayment programs.

The letter was signed by Van Hollen, Cory Booker (N.J.), Sherrod Brown (Ohio), Tammy Duckworth (Ill.), Bob Menendez (N.J.), Alex Padilla (Calif.), Brian Schatz (Hawaii), and Tina Smith (Minn.).

The push to include more Parent PLUS borrowers in the student loan forgiveness program comes as borrowers who never finished college claim Biden's plan is not enough.

An estimated 39 million Americans have attended college but never earned their degree. According to a report from education lender Sallie Mae, many students cited a life change or loss of motivation as the reason why they left college,

Others said financial difficulties or mental health issues contributed to their early departure. "Many times, non-completers are first-generation college students from underserved communities," said Rick Castellano, spokesman for Sallie Mae.

Millions are expected to benefit from Biden's plan, but experts say student loan forgiveness is not enough to combat education debt and colleges tuitions continue to soar beyond affordability for many.

"You are not addressing the bigger problem standing in front of us which is the enrollment decline," said Hafeez Lakhani, founder of education-focused Lakhani Coaching in New York. "The enrollment decline is absolutely linked to affordability."

Some colleges, citing inflation and rising expenses, have raised tuition by as much as 5% this year.