By Josie Barton
Democrats urge President Joe Biden to cancel up to $50,000 in student loan debt per loan borrower. Biden communicated that he is more comfortable with a $10,000 forgiveness amount per borrower.
Top democrats in the push of the executive action include Elizabeth Warren, Chuck Schumer, and Ayanna Pressley. They say that the executive order would decrease the economic and racial factors which effect a student’s ability to receive student loans.
On his first day in office, Biden signed an executive order to pause federal student loan payments through the end of September because of the coronavirus pandemic.
Congresswoman Ayanna Pressley said “President Biden has the legal authority to cancel billions in student debt with the stroke of a pen and he must meet the moment by using that authority, which would not only set us on a path to an equitable recovery, but would also help reduce the racial wealth gap.”
One issue that arises by the republican party is that Pressley’s idea that the action would be that simple and undemanding is untrue. The responsibility of loans would most likely fall on the taxpayer and included in gross income.
The Congressional Budget office expects taxpayers to be responsible for $31 billion over the next few decades.
Senator Warren says, “Data show that canceling the student loan debt would result in greater home ownership rates, more housing stability, improved credit scores, higher incomes, higher GDP, more small business formation and more jobs.”
Republicans say the cost of college tuition would simply rise in result of forgiven loans. They also claim that it is not fair to students who have already paid their student loan debt.
Democrats battle this by saying that too many students experience injustice for their future economic endeavors such as issues in buying a home with a poor credit score affected by their unpaid student loans. According to Studentaid.gov, about 1 in 8 Americans have student loans.
Supporters say the act will boost the economy and increase student’s future success. The act of forgiving student loan payments introduces legality issues, but Biden says this issue is of high importance on his agenda.
image by businessinsider.com