Student Loans in Focus as Lawmakers Call for Pause and Debt Cancellation

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Student Loans in Focus as Lawmakers Call for Pause and Debt Cancellation

Photo by Drew Angerer / Getty Images

Some members of Congress are calling on the Biden-Harris administration to extend the pause in student loan payments until spring 2022. The goal is to give borrowers more time to get on their feet amid the COVID-19 pandemic.

Congressman Ayanna Pressley (Massachusetts), Elizabeth Warren (Massachusetts) and Senate Majority Leader Chuck Schumer (New York) held a press conference on the issue on Capitol Hill on Tuesday.

In June, legislators wrote letter before President Biden called on the president to extend the pause in federal student loans to at least March 31, 2022.

Sumer said in the Senate Hall, explaining that there are currently about 45 million student loan borrowers across the country who owe $ 1.7 trillion in education debt. “In good times, paying off tens of thousands and sometimes hundreds of thousands of debts can be tough, especially for young people willing to leave their homes in their prime,” he said. “But during this pandemic, when Americans lost their jobs and income, it became even more difficult to pay off those loans.”

The federal government became a lifeline for tens of millions of borrowers when it paused most federal student loans last spring. However, this temporary measure will expire in about two months, even though many student borrowers are still adjusting to the new norm.

Earlier this year, Pressley, Warren, and Schumer brought their colleagues to reintroducing their bicameral resolution outlines a bold White House plan to tackle the student loan debt crisis. He suggests that the commander-in-chief will use existing powers under the Higher Education Act to cancel student loan debt of up to $ 50,000 for federal student loan borrowers.

Pressley said the student debt crisis has disproportionately affected black and brown borrowers in her Massachusetts area and across the country. “… Because of generations of precise and deliberate political acts of violence, [we] were forced to take on higher student debt rates just to get the same degree as our white peers, ”she said.

Biden has previously stated that he can support a $ 10,000 student loan debt cancellation. Pressley wants to see a much higher figure.

“This is one of the most effective ways he can radically help millions of families, helping to narrow the racial wealth gap and laying the foundation for equitable and fair long-term recovery. In this moment of ongoing crisis, our families need whatever help they can get. ”

THEMES: student loan debt



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