Schumer, Warren, Pressly urge Biden to extend his student loan pause



As the countdown draws near for student borrower repayments to resume, Senator Chuck Schumer (NY), Senator Elizabeth Warren (MA) and Representative Ayanna Pressley (MA) have teamed up today to press conference urge President Biden to “pick up the pen” and extend suspension of student loan payments

Currently payments and interest on federal student loans suspended until September 30, 2021. In March 2020, Congress passed the CARES Act and suspended payments and interest until September 30, 2020. In May, House Democrats passed legislation providing for extended suspension for another year but the Republicans in the Senate have never considered this law.

Before the suspension ended, then-President Trump extended the pause twice. eventually until January 2021… Then on his first day in office, President Biden extended the pause until September 30, 2021

Warren, Pressly, Schumer and Representative Joe Courtney (D-CT) brought a letter in June which called on Biden to extend the pause in payments until at least March 31, 2022. They were joined by 19 other senators and 40 other members of the House of Representatives. Earlier this month, Senator Patti Murray (D-WA) and Representative Bobby Scott (D-VA), chairs of their respective education oversight committees, urged Biden to extend the payment pause until early 2022

At a press conference, Senator Schumer and Representative Pressley put forward arguments in favor of extending as well as writing off student debt, highlighting this as a racial justice issue. Borrowers of color they are significantly affected by student debt. Since black students have less wealth, they are more likely to borrow for college. Data shows black students borrow for bachelor’s degrees at a rate 17 percentage points higher than their white peers. Pressley told reporters that the default rate of black borrowers is five times higher than that of their white counterparts.

Pressley also talked about benefit to the economy from writing off student debt. Congresswoman said it was a matter of economic justice and that canceling could help stimulate the economy

Senator Warren began his speech with tick-tock, tick-tock, noting how soon payments would resume. In her comments, she urged the president to extend the pause in payments to protect borrowers who may be in too much difficulty when payments resume.

Warren also advocated for student debt cancellation, highlighting her plan cancel up to $ 50,000 per borrower using the executive branch, she says that the president has. Warren said this would void the entire balance sheet for approximately 36 million people, representing 86 percent of all borrowers.

Many are worried about the resumption of payments, especially after such a long absence of repayment. Earlier this month, Warren and Pressly, along with Senator Corey Booker of New Jersey, wrote to the Department of Education asking what steps he is taking to protect borrowers once payments are resumed.

Later today, Senator Warren holds Hearing of the Subcommittee on Economic Policy of the Committee on Banking, Housing and Urban Affairs discussion of how to protect student borrowers and the economy in the coming transition periods.

Related readings:

Will abolishing student debt boost the economy?

How Suspending Student Loan Payments Can Help Forgiveness


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