Vertex Democrats and leftists are calling on the Biden administration to push back the imminent resumption of student loan payments and the eviction of tens of millions of Americans, by requiring the president to exercise his executive powers.
Senate Majority Leader Chuck Schumer, Representative Ilkhan Omar Minnesota and New York Representative Jamaal Bowman among Democrats demanding a president Joe Biden extend the federal government’s moratorium on evictions; and suspend student loans.
Sumer joined numerous student loan reformers last week, warning Biden and Congress that the resumption of payments scheduled for October 1 would be a “disaster” for many of the country’s 43 million borrowers. Omar and Bowman were just two lawmakers who ridiculed the White House for suggesting they had no power to extend the eviction moratorium that ended Saturday.
“If payments resume on October 1, millions of students, borrowers and parents will suddenly be returned to maturity at the same time,” Schumer wrote in an article published Wednesday by Natalia Abrams, executive director of Student Debt Crisis. “Even those who live paycheck to paycheck or no paycheck at all.”
The Biden administration has not backed either the extension of student loan benefits or a moratorium on evictions, initiatives taken during the onset of the coronavirus pandemic. June Supreme Court the decree announced Centers for Disease Control and PreventionThe moratorium on evictions is illegal, prompting the White House to focus on distributing a record $ 1.5 billion in rental aid this month alone.
The largely tacit attitude of the White House, even three days after the end of the eviction moratorium, prompted the US Capitol sit-in Saturday night and fears among Democratic strategists that they could be rejected in the midterm elections if they do not act in accordance with these measures.
“The White House says it has no authority to extend the eviction moratorium or cancel student debt. But he had no problem launching airstrikes without congressional approval, ”Bowman tweeted, echoing the urgency of numerous progressive lawmakers, including Missouri. Corey Bush and Pramila Jayapal from Washington State.
“Obviously canceling student loan debt is the right policy. But also – the policy of renewing student loan payments next month is damn awful. Why the hell, if you’re a Democrat who cares about the interim deadlines, would you want to? ”Commented Matthew Cortland of Data Progress, a progressive think tank.
But Biden faces several major challenges in postponing evictions and student loans.
US Supreme Court justices ruled in the Alabama real estate case in late June, saying that “the CDC has exceeded its existing statutory powers by imposing a nationwide moratorium on evictions.” And the Department of Education appears poised to reopen the student loan system on Oct. 1, despite teams of aides testifying to Congress that the result will be “chaos.”
Last month, two major student loan providers – FedLoan Servicing and Granite State Management & Resources – blasted the Department of Education with a loud announcement that they were completely ditching their 10 million borrower accounts.
Persis Yu, Director of the Student Borrower Project at the National Consumer Law Center, said Senate The committee expects “disastrous consequences” for borrowers last week due to the added complexity of the system, which is scheduled to restart on October 1.
The US Department of Education has written off more than $ 1.5 billion in student loan debt for nearly 92,000 borrowers under the Biden administration, especially among borrowers who may show that colleges have misled them about the value of their degrees. About 1.2 million households reported that they were likely to face eviction in the next 60 days, according to the recent Census Pulses Survey.
But that hasn’t stopped the stream of criticism from moderate and progressive Democrats.
“The moratorium on evictions is growing again. The moratorium on student loan payments ends. Eliminate student debt, invest in affordable housing. This crisis is preventable, ”Omar wrote on Sunday.
Newsweek reached out to the White House and the Department of Education for additional comments Monday afternoon.