Transform Student Debt to Home Equity

Floor Speech

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Ms. KAPTUR. Madam Speaker, I rise today in response to two crises facing America's young adults: the student debt crisis and the homeownership crisis.

Since World War II, America's middle class experienced unprecedented growth in homeownership and wealth accumulation. Tragically, today, due to exploding levels of student debt, which, cumulatively, total over $1.5 trillion, the option of homeownership for far too many young, aspiring Americans remains out of reach.

The homeownership rate for those under 35 is just 36 percent, 10 percentage points lower than 2006. These dismal numbers have exacerbated the racial wealth gap as well.

During the financial crash of 2008, African Americans lost half of their accumulated wealth since the founding of the Republic. In 2017, African American homeownership fell to 43 percent, effectively negating any progress since the Fair Housing Act.

That is why I have introduced H.R. 3511, the Transform Student Debt to Home Equity Act. My bill directs HUD and the Federal Housing Finance Agency to establish a pilot program to renegotiate creditworthy Federal student debt holders with eligible homes.

I thank the Financial Services Committee for considering it this week, and I ask my colleagues to consider cosponsoring this important legislation.

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