Council President Gregory Urges Federal Gov’t to Extend Student Debt Deferral/Forgiveness Program
City leader says such a program would require that students live in urban, suburban or rural areas affected by poverty and economic disadvantage
Wilmington City Council President Theo Gregory believes that many communities around the United States could be injected with human energy, creativity and community economic support if government student loan recipients were to live in those communities. Gregory sponsored a Council Resolution that was approved by City Council last night asking the Federal government to establish a student loan deferral or forgiveness program that requires qualifying students to take up residence in communities affected by poverty and economic disadvantage.
Gregory’s Resolution was co-sponsored by Council Members Nnamdi Chukwuocha, Michael Brown, Robert Williams, Loretta Walsh, Hanifa Shabazz and Maria Cabrera.
It is estimated that student loan debt in America totals approximately $1.6 trillion. The Federal Reserve Bank of New York says student loan debt is the only form of consumer debt that has continued to rise following the 2008 consumer debt peak and recession.
“The federal government currently offers student loan deferral and forgiveness programs to students who perform public service or for those who continue their graduate or post-secondary studies,” said Gregory. “I feel we should extend this government benefit to students who will become active members and supporters of a community that can benefit from an injection of their creativity and knowledge. Students who have earned degrees in the law, in education or in economic development and community leadership could add a great deal to our neighborhoods and help people to thrive. In addition, we can ease the burden on students who are carrying loans with high interest rates and penalties that adversely affect them as they enter the workforce after earning their degree.”
Gregory said Wilmington already extends a special welcome to various types of artists so they can expand and display their talents and help breathe new life into our neighborhoods. He said we also welcome and support entrepreneurs who are seeking investment capital to start or expand their businesses hoping that they will base their business in Delaware.
“We need to think differently when it comes to improving our neighborhoods, especially those that have been battered for years by crime, economic neglect and poverty,” said Gregory. “There are hundreds of thousands of students who have obtained degrees in subjects that can assist these areas. I would hope the Federal government will listen to this idea and act on it.”
Gregory said a letter will be sent to President Obama and to the Delaware Congressional delegation with a formal request on the part of Wilmington City Council to expand the deferral and forgiveness options for student loans.
For more information about this news release, contact:
John Rago
Communications and Policy Development Director
Wilmington City Council
Phone: (302) 576-2149
Mobile: (302) 420-7928
Email: jrago@WilmingtonDE.gov