A group of Democratic lawmakers led by the Senate leader Charles Schumer
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The resolution from Schumer, Warren and Democratic Reps. Ayanna Pressley
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Alma Shealey Adams Record Number Of Black Women Elected To Congress In 2020 Armed Trump Supporter Arrested At North Carolina Polling Station From HBCUs To Capitol Hill: How Congress Can Play An Important Role MORE (NC) and Mondaire Jones (NY) is not legally binding, but would serve as a formal congressional approval of a popular but polarizing progressive proposal. A similar resolution was tabled in the previous Congress.
“We’re not going to stop until we reach it, until $ 50,000 in debt has been canceled for every student in the country,” Schumer said at a press conference on Thursday. “Let’s get it done.”
Biden has faced mounting pressure from progressives and borrower advocates to unilaterally wipe out a huge chunk of the federal government’s $ 1.6 trillion in student loans owed by more than 43 million people.
White House Press Secretary Jen Psaki
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“Debt relief is, of course, a major priority for the president,” Psaki said, adding that Biden extended a Trump-imposed pause on federally held student loans and interest accrual until September hours after his inauguration.
“[Biden] took a step through executive action on day one and he would look to Congress to take the next steps, “added Psaki.
Proponents argue that Biden has the authority and responsibility to forgive student debts as the coronavirus pandemic is stirring the U.S. economy, placing the greatest burden on those who can least afford it.
“Data shows that canceling student loan debt would result in more homeownership, more housing stability, improved credit scores, higher incomes, higher GDP, more small business creation and more jobs,” said Warren, who said in December that Biden a “moral obligation” to wipe out student loan debt.
“Student loan forgiveness is good for you, whether you have a student loan or not, because it is good for our economy,” Warren said.
Debt cancellation advocates say it would also help close the racial wealth gap, given the relatively higher rates of overdue student loans among black and Spanish borrowers.
“The student debt crisis has always been a matter of racial and economic justice, but for too long the story has ruled out the Black and Latinx communities, and the ways in which this debt has exacerbated the deep-seated racial and economic inequalities in our nation,” said Pressley, a member of the House Financial Services Committee.
The resolution calls on Biden to order the education secretary to use the provisions of the Higher Education Act and forgive up to $ 50,000 in debt per borrower. It also asks Biden to order the IRS to waive taxes on the canceled loans, as forgiven debts are typically treated as taxable income in the US.
The plan proposed in the resolution would be overturned about 80 percent of federally held student debt, according to an analysis by Beacon Policy Advisors, a DC research firm.
Passing the resolution would be a major symbolic victory for debt cancellation advocates, and could increase pressure on Biden to follow suit.
Still, Biden has already drawn fire from Republicans for signing dozens of executive actions shortly after taking office and would likely be berated by the GOP for implementing a massive debt forgiveness plan on his own.
Economists are divided on the potential benefits of loan forgiveness, as even some liberal analysts argue that taking out student loans is not the most effective way to boost the economy.
It is also disputed whether the education secretary has the legal authority to remit the student debt. Former Secretary of Education Betsy DeVos
Betsy DeVos Former Trump Officials Find Tough Labor Market Pardon Talks Get More Intense As Trump Approaches Last 24 Hours in Azar Office in Exit Letter to Trump Says Capitol Riot Could ‘Tarnish’ Legacy considered whether she had the authority to cancel student loan debt during the start of the coronavirus pandemic in March, but Trump administration lawyers decided it would be illegal, according to a memo released last month.
However, Schumer expressed confidence that debt cancellation supporters would be able to speed up enough to convince Biden to forgive a specified amount of debt. Schumer added that he and Warren discussed the matter with Biden and his economic advisers a few weeks ago and that the president had no objection to their campaign.
When we started this, I told the president that we would try to get the American people behind this to support him if he – hopefully – decides to do it. And he had no problem with that, ”said Schumer.
Updated 12:24 pm