“Tick Tock, Mr. President.” Warren and Schumer urge Biden to write off student debt

0
37

[ad_1]

Leading Congressional Democrats held a press conference this afternoon urging President Biden to cancel student loan arrears.

“Tick tock, tick tock,” said Senator Elizabeth Warren, Massachusetts, noting that 30 million Americans will have student loan accounts by October as the current moratorium on federal student loan payments comes to an end. “The pause in payments is coming to an end, and the size of these payments for many borrowers is equal to the size of their rent or car payment,” which will lead to a “difficult choice” for borrowers.

Warren urged Biden to extend the moratorium on student loans and use executive measures to write off student loan arrears of $ 50,000 or more. Warren compared student loan debt to a “sword” hanging over the heads of borrowers. “This sword is getting a little closer every day. The President can remove that sword and remove this pain by writing off student loan debt of $ 50,000 or more. ”

Warren was joined by Senate Majority Leader Chuck Schumer, New York, who donned a “cancel student debt” face mask at the press conference. “President Biden should use his existing legal authority to write off student debt of up to $ 50,000,” he said. Schumer argued that the pause in student loan payments showed how important it is for borrowers to cancel student loan debt, as it freed up financial resources for millions who did not have to pay on the student loan.

Rep. Ayanna Pressly (D-MA), who also joined the press conference, argued that canceling student loans is a matter of racial justice, characterizing student loan debt as “political violence” against black and brown borrowers who were forced to borrow to a higher level of student debt compared to their white peers. “President Biden has the ability and responsibility to address the pain and harm these communities are experiencing by using his executive powers to write off $ 50,000 federal student loan debt.” Pressley argued that abolishing student debt would help address the racial welfare gap.

Biden made promises to accept widespread student loan forgiveness during his presidential campaign last year, but so far he has taken a more targeted approach. Biden canceled hundreds of millions of dollars student loan debt to borrowers defrauded by some commercial schools, but that makes up a tiny fraction of the $ 1.8 trillion in student loan debt that remains outstanding. Biden said he could support a $ 10,000 student loan write-off for each borrower, but does not yet support a $ 50,000 or more debt write-off, as suggested in today’s press conference.

Warren, Schumer and several top student loan legal experts argued that President Biden has broad authority to cancel student debt using executive measures without requiring Congress to be involved. However, Ministry of Education officials, led by former Education Minister Betsy DeVos, disagreed: argue this widespread abolition of student loans goes beyond the statutory powers of the president.

In April, Biden ordered his administration to conduct a legal due diligence on student loan cancellations. The administration has not yet announced whether this check has completed.

Meanwhile, the picture of student loans remains uncertain for borrowers. Two main operators for servicing student loans recently announced their retirement out of the student loan service space, which will lead to a potential turmoil of 10 million student loan borrower accounts this fall. At the same time, millions of borrowers must resume paying off their student loans after the repayment gap ends in September. Biden administration reportedly considering a possible extension

Further reading

Student Loan Mess Coming: Borrowers, Do These 6 Things By September

Huge shake-up in student loan service: this major loan service center ends its contract

Elizabeth Warren to Biden: Extend Student Loan Break to 2022 or Later

Your Student Loan Worker Is Changing: 7 Steps to Protect Yourself Now

[ad_2]

Source link