Monday, when demand by a journalist, whether or not he is student loan forgiveness is in his economic plan and whether or not he will take executive action to achieve it, President-elect Joe Biden has said something should be done “immediately”.
“They have real problems,” he said of people in debt. “They have to make choices between paying their student loans and paying their rent, those kinds of decisions. It should be done immediately.
But Biden did not say if he would take executive action to write off student loan debt, as Democrats like Senate Minority Leader Chuck Schumer (D-NY) recently said he could. If the Democrats don’t win two January 5 elections in Georgia, they will still be in the minority in the Senate, which means Senate Majority Leader Mitch McConnell (R-KY) could block their proposals. This sparked new calls for debt relief (and college tuition-free) from various Democratic leaders, such as #CancelStudentDebt started trending on Twitter.
According to Forbes, student loan debt is the second largest category of consumer debt, with a cumulative total of $ 1.68 trillion, more than 16% more than at the start of Trump’s presidency in 2017, according to CNBC. According to data aggregated by Student Loan Hero, about 45 million people in the United States face student debt, with monthly payments ranging between $ 200 and $ 299 on average for non-deferred loans, and about 11% of borrowers face delinquent or delinquent loans. suffering. In response, progressive leaders expressed the need to ease this burden to stimulate the economy.
In 2019, Senator Bernie Sanders (I-VT), Representatives Ilhan Omar (D-MN) and Pramila Jayapal (D-WA) presented a plan that would write off all student debt. In September of this year, Senators Schumer and Elizabeth Warren (D-MA) proposed cancellation up to $ 50,000 in student loan debt for federal loan borrowers.
“We believe Joe Biden can do it with the pen rather than with legislation,” Schumer said in a recent maintenance with Anand Giridharadas.
“Biden-Harris can write off billions of dollars in student loan debt, giving tens of millions of Americans an immediate financial boost and helping close the racial wealth gap. It is the most effective executive action available for a massive economic stimulus ”, Elizabeth Warren tweeted Last week.
Other progressives in Congress have made their position clear on the issue this week, including members of the the growing squad. Representative Rashida Tlaib (D-MI) wrote on Twitter, “Education is an opportunity that uplifts our communities and should not be an anchor that holds us back. »Elected Representative Cori Bush (D-MO) wrote, “Student debt relief in the event of a pandemic expires at the end of December. january would be [a] good time to go ahead and undo everything.