WILMINGTON, DELAWARE – JANUARY 14: United States President-elect Joe Biden speaks as he unfolds his plan for … [+]
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This story has been updated.
President-elect Joe Biden’s transition team released a comprehensive $ 1.9 trillion stimulus proposal on Thursday. The far-reaching plan provides significant economic relief, including additional $ 1,400 stimulus controls, improved federal unemployment benefits, a minimum wage of $ 15 an hour, paid sick leave, and investments in public health infrastructure and pandemic relief programs.
While the proposal includes billions of dollars in facilitation for higher education, Biden’s plan does not include student loan waivers or other facilities for student loan borrowers.
The House Democrats previously passed a stimulus bill in May that extended the current moratorium on student loan payments through September 2021 and waived $ 10,000 in student loans for economically troubled borrowers. This law was never taken up by the Republican-controlled Senate. The Democrats will control both houses of Congress once Biden is in office, though margins will be tight.
Biden has pointed out time and time again that he will support student loan making. Last Friday, his transition team confirmed that as one of his first acts, Biden will direct the Department of Education to extend the existing moratorium on student loan payments, interest, and collections, urging Congress to waive $ 10,000 in student loans per borrower. But no details were given. Biden also advocated student loan and other student debt relief during his 2020 presidential campaign.
While some had speculated that additional student loan relief would flow into a larger stimulus proposal, it now appears that Biden will urge Congress to pass student loan relief through separate laws, which transition officials confirmed Thursday.
Biden could take some relief on student loans through executive action, and it will likely do so by extending the current hiatus in student loan payments and interest, which the Trump administration has done twice. But Biden has expressed his reluctance to use executive power to enact widespread student loan forgiveness, saying last month, “I think that’s pretty questionable. IM not sure. I probably wouldn’t do that. “
Consumer rights groups and progressive Democrats have pushed for broader student debt relief. Last month, Rep. Ayanna Pressley (D-MA), along with several other progressive Democrats, tabled a resolution in the House of Representatives calling on Biden to cut $ 50,000 in federal student debt for every borrower who uses executive powers, reflecting a similar resolution introduced in the Senate by Senators Elizabeth Warren and Chuck Schumer in the fall. The resolutions called on the next president to use executive power to cancel the student debt.
“The lack of a legal requirement for student debt forgiveness increases the urgent need for President-elect Biden to administratively cancel student debt,” a coalition of student borrower advocacy groups said in a statement Thursday. “We hope that the lack of debt relief in this package is a clear indication that President-elect Biden plans to act quickly to use his powers to cancel student debt through executive action.” The coalition encompasses the action Center on Race and the Economy (ACRE), Americans for Financial Reform, Center for Responsible Lending, the National Association of Consumer Advocates, Student Debt Crisis, and Young Invincibles.
further reading
Report: Biden Will Push for $ 10,000 for Student Loan Alms and Student Loan Extension
6 Student Loan Reforms Possible With a Democratic Senate
Biden Names Substitute For Betsy DeVos – Student Borrower Advocates Cautiously Optimistic
Final Stimulus Deal: What Student Borrowers Need To Know About End Of Relief
Ayanna Pressley: Biden should cancel student loan debt of $ 50,000 for each borrower
Could Biden Terminate Your Student Loans? It’s complicated
source https://collegeeducationnewsllc.com/bidens-stimulus-proposal-no-student-loan-forgiveness/
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