President Joe Biden should help those struggling with student loan debt destruction by instantly canceling up to $ 50,000 in federal student loan debt, Democratic officials said Thursday.
Biden can take the step by using the powers granted to him under the Higher Education Act, U.S. Senator Elizabeth Warren, U.S. Representative Ayanna Pressley and Massachusetts Attorney General Maura Healey said at a news conference that afternoon.
Pressley said the measure will address a crisis that is causing disproportionate harm to black and brown borrowers.
“We are all here to urge President Biden to agree with the movement that elected him and use his executive powers to cut $ 50,000 in federal student loan debt,” said Pressley.
Historically discriminatory policies – such as redlining, which have restricted black people from getting the bank loans needed to buy homes and build wealth across generations – have forced black and brown students to go to college Be more reliant on student loans, Pressley said.
Attorney and former Democratic candidate for Congress, Qasim Rashid, argued in an opinion column on NBC News why the Biden administration should ask Congress for a bill to eradicate student debt. Rashid came to LX News to explain how canceling student loans would benefit all aspects of the economy and why our higher education system needs reform to keep debt from skyrocketing again.
“If President Biden is serious about filling the racial wealth gap, if President Biden tries to rebuild himself better, then he must use his executive powers to provide broad, comprehensive student debt relief,” she said.
Limiting debt relief to as much as $ 50,000 will be best for the maximum number of people trapped under mountains of debt that make it difficult to buy homes, start businesses, and raise families, Warren said.
$ 50,000 in debt relief would help bridge the wealth gap between black and white borrowers, Warren said. She also said that 40% of students who took out student loans failed to graduate from college, with many struggling with debt while doing lower-paying jobs.
Efforts to cancel student debt have been criticized by some former student debt holders who say they worked and saved to pay off their debts and don’t think it fair to let others off the hook.
President-elect Joe Biden was asked Monday whether student loan debt relief was included in his economic recovery plan. “It’s on my schedule,” said Biden. “The law passed by the Democratic House calls for the immediate waiver of $ 10,000 on student loans … It should be done immediately.”
Warren said it would be good for everyone to forgive student loan debt.
“Our economy would do better if everyone with student loan debt could get out and start their small businesses, buy houses and take public jobs,” she said. “If we take the position that if I haven’t got it in the past, you can’t get it now, we’ll never build anything. We wouldn’t have started social security. We wouldn’t have started Medicare. “
La’Kayla Carpenter said she was days away from buying her first home when she learned she was in arrears with $ 23,000. She said she tried to reach an agreement to get out of default but was refused.
“I did everything I could to stay in the right direction – I went to school, graduated, got married, had kids,” she said. “Getting the feeling that I was less than one person didn’t feel very good.”
Biden announced in January that federal student loan payments will remain on hold and interest rates will be set at 0% through at least September 30, in order to extend a lawsuit by former President Donald Trump’s administration.
The student loan payment hiatus has since expanded to more than 1 million who defaulted on student loans from private lenders offering federal government-covered loans under a program that expired in 2010.
source https://collegeeducationnewsllc.com/pressley-warren-push-biden-to-nix-50000-in-student-debt-nbc-boston/
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