Top Democrats urge Biden to extend the break in student loans and cancel $ 50,000 for the borrower

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Senate Majority Leader Chuck Schumer (DN.Y.), joined by Senator Elizabeth Warren, Massachusetts, and Rep. Ayanna Pressley, Massachusetts, on Tuesday called that President Biden extend the moratorium on student loans and cancel the $ 50,000 borrower.

Why is it important: Americans are indebted to $ 1.6 trillion in student loans and the current pause in payments will end on September 30, causing more than 30 million people to start paying student loans in October, even if the pandemic continues.

Memories: The federal moratorium on student loans began in March 2020 under the CARES Act and has been extended several times.

  • Biden previously indicated that he will be willing to cancel no more than $ 10,000 per borrower.
  • Earlier this month, the administration canceled $ 55.6 million borrowed student loan for victims of commercial fraud in college

The big picture: Schumer called on the president to give people a “chance to recover” from the pandemic and “wait until spring” to unfreeze the moratorium.

  • The average borrower has to make a monthly payment of $ 400, which Schumer called “too much.”
  • All three legislators viewed the extension of the moratorium as the first step, followed by the elimination of $ 50,000 per borrower.
  • Schumer noted that the resumption of payments will halt the recovery of the country’s economy and “could put millions of borrowers on the brink of a financial crisis.”
  • Paying off student loan debt will help narrow the racial wealth gap, Schumer said.

What they say: The moratorium on student loans “has proven to be one of the most effective steps the government has taken to help Americans overcome the medical and economic crisis caused by COVID-19,” Schumer said.

  • “Forcing borrowers to pay off their debts now would be unfair, tough, in many cases it would be cruel,” he added.
  • “The size of these payments for many borrowers is the size of their rent, car payments, groceries, childcare,” Warren said, adding that many borrowers “live with a sword over their heads.”
  • “It’s a matter of economic justice, it’s a matter of racial justice,” Warren added.
  • “It would be shameless to do nothing,” Pressley said.

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