The Americans are now in debt over $ 1.7 trillion in student loansit appears that lawmakers are more serious than ever to write off at least some of this debt.
Congress Leaders put forward a number of proposals reduction in some form of student loan debt for an estimated 45 million Americans. Measures include student loan forgiveness up to USD 50,000, debt write-off up to USD 10,000simply by making it easier to repay loans by lowering refinancing interest rates and allowing loans to be repaid in the event of bankruptcy.
With so many options on the table, where do members of Congress refer to student loan forgiveness? CNBC Make It emailed members of Congress from each state to ask what proposals they supported on student loan write-offs.
Of the more than 500 Make It Congress members who attempted to contact, 66 responded.
This is how it fails:
- 10 members of Congress, all Republicans, do not support a flat rate student loan forgiveness.
- 9 participants did not specify whether they support forgiveness or not.
- 1 Democrat supports student loan forgiveness, but not an “arbitrary amount” plan.
- 37 Democrats in Congress – both in the House of Representatives and in the Senate – support measures that would write off up to $ 50,000 in student loans.
- 6 Democrats who responded say they support writing off student loans for below, $ 10,000, threshold…
- 27 members of Congress reported receiving student loans.
- 5 members are still paying off their loans.
While many members of Congress have not responded to CNBC’s Make It’s requests, some lawmakers have already made their point public. Senator Bernie Sanders, Vice President, and representatives from Alexandria Ocasio-Cortez, NY, and Maxine Waters, California, for example, joined the resolution calling for President Biden to cancel student loans up to $ 50,000… Senator John Thune, RS.D., said he doesn’t believe that student loan forgiveness is the answer, stating that the Democrats’ plan to forgive $ 50,000 is “incredible and fundamentally unfair.”
According to the data, about 36 million borrowers will pay off student loan debt if the US government cancels the student loan debt of $ 50,000. U.S. Department of Education data released by Senator Elizabeth Warren, State of Massachusetts. About 15 million borrowers will pay off debt as part of a plan to write off up to $ 10,000 in student loans.
“I got my degree from a public commuter college, which cost $ 50 a semester. It was a quality public education that I could afford to pay for the salary of a part-time waitress – and it opened a million doors for me. the janitor should be a teacher, law school professor and US Senator, ”Warren said in a statement to CNBC Make It.
But today it is almost impossible for students to find such an opportunity, she says. “Student loan debt is crushing millions, especially during this pandemic. It is the anchor that is pulling down our stranded economy. ” That is why Warren is demanding that President Biden immediately cancel federal student loan debt of up to $ 50,000, she said.
But not everyone will benefit. Private student loans not included in any of the student loan forgiveness proposals put forward so far. Nonetheless, many believe that forgiving student loans will help close the wealth gap and lift the huge burden on millions of Americans.
“Writing off student debt across the board is a racial and economic justice issue, and this is precisely the bold and effective policy that President Biden is mandated to implement,” said Rep. Ayanna Pressley, Massachusetts. CNBC Do it.
Black college graduates owe an average of $ 52,726 compared to their white counterparts, who owe an average of $ 28,006, according to 2016 estimates. Brookings Institution…
“Writing off the $ 50,000 federal student debt through executive action is one of the most effective ways to stimulate our economy and close the racial wealth gap,” says Pressley.
But for some, simply canceling $ 50,000 student loans is not the right decision. President Joe Biden, for example, has repeatedly rejected proposals that he use executive orders to write off $ 50,000 in student loan debt. He’s on record $ 10,000 Debt Forgiveness Support and noting that Congress Must Provide Legislative Decision…
Ohio State Rep. Steve Stivers told CNBC Make It that he does not support universal student loan forgiveness for several reasons. “Our national debt exceeds $ 28 trillion and continues to grow. That’s over $ 85,000 per citizen, far more than the $ 32,731 the average student borrower has, ”he says.
Stivers is also concerned that universal forgiveness could have unintended consequences. “[Students] they may be more inclined to take on unacceptable amounts of debt if they think the government can pay it off later, or they may not take the time to understand the decision they are making, ”he says.
Congressman Scott Peters, Calif., Supports the forgiveness of student loans, but believes it should be tied to income and not “a certain arbitrary amount,” he told CNBC Make It.
“I support lowering interest rates on student loans, allowing refinancing and allowing discharge in the event of bankruptcy,” he says, adding that he also advocates encouraging the repayment of student loans provided by the employer.
While Warren and others recently called on President Biden to use their executive powers to write off federal student loan debt, there is some controversy over whether this would be legal. If Biden chooses this path, forgiveness can happen relatively quickly.
If not, Democrats may have to use the same. the budget reconciliation process they had with the $ 1.9 trillion US bailout plan push through Congress a universal measure of student loan forgiveness. And right now they are more than a few voices shy about getting his full support.
In the meantime, those with federal loans are still getting a grace period. At least until the end of September Department of Education continues to suspend loan payments, waive the collection of outstanding loans and introduce a 0% interest rate on all federal student loans.