Student loan debt: Sumer continues to pressure Biden to cancel $ 50,000 debt

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A New York Democrat said Monday that the Justice Department is currently conducting a legal review of whether Biden has the authority to issue blanket student debt forgiveness.

Biden expressed support for canceling the $ 10,000 per borrower, but argued that the government should not forgive debts to people who went to Harvard, Yale and Penn.

He also indicated that he believed Congress should make changes through legislation that would make it harder to repeal them, although White House spokeswoman Jen Psaki said the administration open for consideration of the executive option.

When asked on Monday if Congress should take the first step, Schumer said it would take too long and there are many other key priorities that the Senate is focusing on at the moment.

“I think it will be much more difficult to do it legally. We haven’t seen our fellow Republicans seize the opportunity, ”he said during a press conference with fellow Republicans Warren and Senator Bob Menendez of New Jersey.

A long-standing debate

More progressive members of the Democratic Party have been calling for student debt relief for years.

Independent Senator Bernie Sanders from Warren and Vermont put forward plans for forgiveness when they ran for the Democratic presidential primary. Biden came up with a political proposal to forgive $ 10,000 to each borrower only after the pandemic began and he was the intended candidate.

Last year, lawmakers introduced a similar resolution urging the Trump administration to write off student loan arrears, but former Education Secretary Betsy DeVos called the proposal a “distribution of government gifts.”

House Democrats included a $ 10,000-per-borrower waiver clause in a massive Covid bailout bill passed in May that never passed the Republican-led Senate.

Covid Relief Bill The law, signed by Biden last week, includes a clause that exempts any pending student debt forgiveness from taxes, but does not provide for cancellation.

Payment deferral extended until September

In one of his first acts in the office Biden extended the pause on student loan payments and interest, the Covid benefit introduced by Congress last year and already extended by the Trump administration. Federal student loan borrowers will not be required to make payments on or before October 1st.

He also supports keeping community colleges free for all, opening four-year colleges free of charge to students from families earning less than $ 125,000 a year, and changing the existing system to make student loan payments more affordable.

The widespread write-off of federal student loan debt will be unprecedented. But memo lawyers from the Harvard Legal Services Center and its Predator Student Lending Project say the Department of Education has the authority to do so.

The department already has several more targeted debt cancellation policies. He writes off debts to defrauded students and disabled veterans. According to the National Student Legal Advocacy Network, Biden could make the lives of hundreds of thousands of borrowers easier by simply expanding these programs.



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