Student Loan Cancellation Update: New Group Considered for Forgiveness

In a renewed effort to cancel student loan debt for a niche group, Democratic Senators Chris Murphy of Connecticut and Tina Smith of Minnesota are pushing a forgiveness program for beginning farmers and ranchers.

With the rising costs of higher education, more students are turning to loans to finance their degrees. However, many students struggle to repay these loans after college, which has become a significant issue for Democrats. So far, President Joe Biden's administration has authorized the cancellation of $153 billion in student loan debt for nearly 4.3 million people, according to a CNN report in April.

Murphy and Smith, both members of the Senate Health, Education, Labor, and Pensions Committee, reintroduced the Student Loan Forgiveness for Farmers and Ranchers Act on Wednesday. The act creates a loan forgiveness program for not only beginning farmers and ranchers, but also women, veteran, and minority farmers.

"Connecticut farmers have always been the lifeblood of our rural communities, but starting and maintaining a new farm is increasingly unaffordable for young people who are often saddled with student loan debt and can't afford to make additional investments necessary for success," Murphy said in a press release on Wednesday. "By helping new farmers pay off their student loans, this legislation would pave the way for Connecticut's next generation of farmers."

There are about 30 percent of producers considered beginning farmers in Connecticut, according to the release. A beginning farmer is someone who is operating a farm with less than 10 years of experience.

Smith echoed Murphy's calls to help the next generation of farmers.

"To keep Minnesota's agriculture economy thriving, we need to continue to invest in the next generation of farmers as the average age of farmers keeps going up. There is more we can be doing to help future farmers fill their shoes," Smith said in the release.

"Student debt is one of the most significant challenges our young farmers and ranchers face. This legislation would help incentivize a younger, more diverse workforce and help more people start and stay in farming."

There are about 16,910 beginning farmers in Minnesota, according to data collected by the U.S. Department of Agriculture in 2017.

Murphy has introduced this legislation twice before, once in December 2022 with Smith and Senator Tammy Baldwin, a Wisconsin Democrat, co-sponsoring the bill, and once in April 2018 with then-Senator Tom Udall, a New Mexico Democrat.

Newsweek reached out to Murphy's and Smith's offices via email for comment.

Currently, Minnesota has a program to help new farmers break into the agriculture industry known as the Minnesota Beginning Farmer Tax Credit. The program gives tax credits to asset owners who rent or sell farmland, equipment, livestock, and other agricultural assets to beginning farmers. However, new 2024 asset owner tax credit approvals have been placed on hold because of limited funds.

Connecticut Agriculture Commissioner Bryan P. Hurlburt told Newsweek via email on Friday: "Connecticut does not have a tax credit or incentive program for new and beginning farmers. However, over the past few years we have fine-tuned a number of our existing programs to better support new and beginning producers based on constituent feedback. As an agency we are strongly committed to diversifying how agricultural products are grown, where they are grown, and who is growing them."

For example, in 2024, the Connecticut Department of Agriculture Farm Transition Grant awarded 17 projects totaling $74,200 through Farm Transition Grant New Farmer microgrants. Meanwhile, of the 20 Farmland Restoration, Climate Resiliency and Preparedness awards, 13 went to beginning or underserved farmers.

Which Groups Get Help?

Dr. Nick Hillman, a professor in the School of Education at the University of Wisconsin-Madison, referenced a 2020 article written by Dr. Denisa Gándara and Dr. Sosanya Jones titled Who Deserves benefits in higher Education? A Policy
Discourse Analysis of a Process Surrounding Reauthorization of the Higher
Education Act, telling Newsweek via email on Thursday that "they have found policymakers favor certain groups over others based on notions of deservingness. This example with farmers seems relevant.

"Federal financial aid policy has a long history of providing benefits [whether it's forgiveness or other subsidies/flexibilities] for borrowers who are employed in areas of national interest. For example, policymakers have created programs for military veterans, public service workers, and medical professionals to help relieve their debt burdens.

"When thinking about the importance of the nation's food supply chain, and in light of the attached study, it makes sense that policymakers would prioritize farmers/ranchers."

Update 5/10/24, 10:43 a.m. ET: This article has been updated with comment from Connecticut Agriculture Commissioner Bryan P. Hurlburt and additional information.