Legislators and Liberal activists urge President Joe Biden to take a step further and cancel loan debt
President Joe Biden plans to tackle student loan debt, especially because of the financial strain they are facing during the coronavirus pandemic. On his first day in the White House, Biden had signed an administrative order to extend the discontinuation of student loans as part of his coronavirus relief plan.
On Thursday, Ron Klain, White House chief, voiced out that President Joe Biden urged his education secretary to look into his sovereignty. This was done to scrap out student loan debts, even though President Biden believed in his early days of the presidency that he has no authority to do so by executive order. However, his recent step can be seen as a clear signal he is acting on the issue.
Liberals insist it would be an unethical advantage to the higher income earners who have already attained their college education, as those individuals are responsible to pay back their loans under the circumstance.
However, President Joe Biden has been skeptical to divert canceling student loan debts to Congress. President Joe Biden said during his campaigning days that his government will aid those who have been “debilitating” student loans. In February at CNN town hall, he said, “I understand the impact of debt.”
Moreover, he added student loans should have a 0% interest margin. He showed leniency towards public sector workers by expanding the student loan forgiveness. He also did away with debts for the students who got tricked into the “for-profit” schools.
Nonetheless, President Joe Biden is skeptical about canceling loan debts for students who went to top-tier or elite schools such as Yale, Penn, and Harvard.
Over the decade, the price tag on higher education has rapidly increased, making it so difficult for students to attain their college degrees without a student loan. The prime requirements from recruiters make higher education necessary in order to get a good job, but the costs of higher education make it difficult for students to achieve them.
For the past 20 years, tuition fees in private and public colleges have doubled. America has accumulated $1.7 trillion student loan debt as more students opt to do more degrees. By this, students hope to gain space and competence for good-paying jobs in the world. Democrats request President Biden to forgive those who have a $50,000 student loan per borrower.
Sen. Warren and Senate majority leader Chuck Summer believe that President Biden may cancel out the $50,000 loans. The request was to take immediate action. Both Elizabeth and Summer said in a statement last fall that: “Studies show that student debt cancellation can substantially increase Black and Latinx household wealth and help close the racial wealth gap.” This also means providing immediate relief to millions who are struggling during this pandemic and recession. Further, it gives a boost to our struggling economy through a consumer-driven economic stimulus. This can cause greater home-buying rates and housing stability, higher college completion rates, and greater small business formation.”
Sen. Elizabeth Warren also said that student loan debtors were in crisis even before the coronavirus pandemic had risen. This means a negative impact on America’s economy.
However, Ocasio-Cortez disagrees with this plan as he says that forgiving student loan debtors may cost early childhood education. On Twitter, she said that “Many won’t fully feel $10k in forgiveness until after Biden’s presidency is over when they have spent 10 years paying off the other $20k+.” She said, “Dems should champion the policy that people can feel ASAP. We need to go big.”
Read more on: Recap of the Met Gala