Biden Shuts Down $50K Student Debt Idea in 6 Words

Marco Green
February 18, 2021

The Hill reported that Biden's comment followed previous statements by the White House that said it was looking into what power the president has in acting unilaterally on the matter.

Those latter proposals are widely embraced by Democrats. But Rep. Alexandria Ocasio-Cortez, D-N.Y., a progressive leader in Congress, questioned the logic behind Biden's rejection of the Schumer-Warren plan.

"Who cares what school someone went to?"

But economics and political science professors at Syracuse University, Biden's alma mater, are uncertain - not just about whether Biden will be able to enact student loan forgiveness but also if it's the right step for the country's post-pandemic economic recovery.

"In the meantime, if Congress moves forward and sends him a package that provides $10,000 of student debt relief, he would be eager to sign that", she added. We've got the *Senate Majority Leader* on board to forgive $50k. "We can and should do it".

Says he doesn't want to forgive debts of borrowers from elite schools - and money would be better spent on early childhood education. Elizabeth Warren said, "Cancelling $50,000 in federal student loan debt will help close the racial wealth gap, benefit the 40% of borrowers who do not have a college degree, and help stimulate the economy".

While Biden presented his higher-education proposals as sensible and pragmatic alternatives to unilateral debt cancellation-which he falsely insisted he doesn't have the authority to carry out-racial justice activist Bree Newsome argued that "there's nothing practical about Biden's stance on student loan forgiveness". It depends on the idea that, I say to a community, I'm going to forgive the debt of billions of dollars. for people who have gone to Harvard and Yale and Penn.

For one thing, Black people are some of the most seriously impacted by the student debt crisis.

The President then delivered a lengthy response that included many of his past objections to large student debt forgiveness, via executive order or otherwise, and his own plans: that "everyone should be able to go to community college for free", that "any family making under $125,000 whose kids go to a state university they get into, that should be free as well", to "provide for changing the existing system now for debt forgiveness if you engage in volunteer activity", that debtors "can work off that debt by the activity you have, and you cannot be charged more than X percent of your take-home pay".

The pause on student loan payments begun under the Trump administration soon after the coronavirus pandemic started and now the suspension will continue until at least September 30, 2021.

The resolution also called on Biden to use the Internal Revenue Code to prevent any tax liability for borrowers resulting from the cancellation.

"Most students in the country don't go to private universities", White said. "Democrats are committed to big, bold action, and this resolution to cancel up to $50,000 in federal student loan debt is one of the strongest steps the president can take to achieve these goals".

"An ocean of student loan debt is holding back 43 million borrowers and disproportionately weighing down Black and Brown Americans", the senators wrote.

President Biden said Tuesday night he won't take executive action to cancel $50,000 worth of student debt per borrower but suggested he would consider wiping out a lesser amount.

An analysis by the Federal Reserve Bank of NY in 2019 found that Black students are more likely to take out loans for college and that Black borrowers tend to have higher student debt loads.

Other reports by Click Lancashire

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