Biden gave a detailed answer as to whether he would cancel the student debt at a CNN city hall in … [+]
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In a CNN town hall in Milwaukee, President Biden spoke about student debt last night.
When asked if he would favor $ 50,000 in student loans per borrower, Biden said he would not support that amount and “would not let that happen.” Biden suggested that he opposed a larger amount of student loan issuance as it would benefit borrowers who went to more expensive and elite private universities “like Harvard and Yale and Penn”. And he raised concerns that the costs associated with higher student debt relief would make it more difficult to adopt other policies like free community colleges and early childhood education.
However, Biden accepted that student debt can be “crippling”. The president reiterated his support for the $ 10,000 student loan award, an amount he has consistently supported since his presidential campaign. And he indicated that his administration would give borrowers with larger student loan balances more avenues for loan forgiveness, especially for borrowers who are volunteering or pursuing careers in the civil service.
Biden was particularly in favor of limiting or even abolishing the interest on student loan debts. “We should get rid of the interest on the accumulating debt,” he said during the town hall event, although he did not make a more specific political proposal. The elimination of interest rates has become an increasingly popular idea among some student loan advocates, who argue that an interest rate cap would dramatically reduce the cost of repayment for millions of borrowers.
On his first day in office, President Biden issued an executive order extending the federal student loan interest freeze until September 30, 2021 – suggesting that he is aware that he has the authority to suspend the interest.
Nonetheless, Biden’s statement at City Hall was a clear rejection of the push by progressive Democrats – including Senate Majority Leader Chuck Schumer (D-NY) – and hundreds of consumer and civil rights organizations to convince him to take out a US 50,000 student loan – dollars to cancel debt per borrower. Some progressive Democrats expressed concern about Biden’s comments.
“The case against the waiver of student loans looks shakier from day to day,” tweeted the MP Alexandria Ocasio-Cortez (D-NY) after Biden’s remarks. “We have the Senate Majority Leader on board to award $ 50,000 [in student loans]. Biden holds back, but many of the arguments against it just don’t hold up on closer inspection. We can and should do it. Keep drifting! “
Proponents of a $ 10,000 student loan cancellation argue that less forgiveness would target relief to those on lower incomes. Notably, giving away $ 10,000 in student loans would eliminate all outstanding student loans for over 16 million people, or a third of all current student loan borrowers, and reduce the balances of an additional 9 million student borrowers by 50 percent.
further reading
Biden is stepping down student loan forgiveness for $ 50,000 – but instead supports that amount
Could these student borrowers be excluded from Biden’s forgiveness?
Can Biden cancel private student loans? 3 options
Biden supports the cancellation of student debt and expresses his openness to action by the executive branch
Democrats take new steps to pressure Biden to cancel student debt – will it work?
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6 Student Loan Reforms Possible With a Democratic Senate
source https://collegeeducationnewsllc.com/i-support-cancelling-10000-in-student-debt-and-eliminating-interest/
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