President Joe Biden has asked Congress to draft a proposal on forgiving student loan debt. Meanwhile, he questions his authority to do so using executive action. “I’m going to get in trouble for saying this,” said Biden. “The president may have the executive power to forgive up to $50,000 in student debt. Well, I think that’s pretty questionable. I’m unsure of that. I’d be unlikely to do that.”
What Biden has done is extend the pause of student loan payments that went into effect last March and was renewed by President Trump last year. As it stands, students are safe from payments and interest through September 2021.
Biden says he supports the idea of forgiving $10,000 of student loan debt per person. However, some lawmakers are demanding an even more generous offer.
Senators Chuck Schumer (D-NY) and Elizabeth Warren (D-MA) have joined with Rep. Ayanna Pressley (D-MA) and other lawmakers in demanding that Biden use executive action to eliminate $50,000 in student debt per person.
Lawmakers insist Biden can use executive action to forgive student debt on his own.
However, some experts say the action would be illegal.
“This debt holds people back from buying cars, from going on vacation, from starting families, from getting the job they want to get,” argues Schumer. “It’s a huge anchor on our entire economy. And there’s very little that the president could do with a flick of a pen that would boost our economy more than canceling $50,000 of student debt.”
Last week, Schumer said he believes the administration will take action to forgive student debt if there is significant pressure from the public. He added that Biden’s top advisers have been “extremely open to listening to us.” Warren has already urged incoming Education Secretary Miguel Cardona to “reform [the Federal Student Aid] so that it works for student borrowers instead of big corporations.”
On the flip side, GOP lawmakers warn that cancelling student debt will have little-to-no effect on the economy. They argue that it could also raise serious questions of fairness for students who have already paid back their loans or avoided going to college due to cost. In addition, any move to forgive student loan debt would likely exclude those who took out private loans.
In total, roughly 43 million Americans owe the Treasury Department $1.6 trillion in student loans.
If the Biden administration forgives all or part of this debt, the burden will fall on taxpayers.
Author’s Note: Universities are unaffordable because the government subsidizes them through student loans. These subsidies allow universities to build new programs that do nothing except push the liberal agenda (rather than prepare students for real jobs). To date, universities have had no motivation to decrease costs.
The price of education will continue to increase and the quality of education will continue to drop until universities have a reason to decrease prices. Canceling student loan debt without fixing the underlying problems is the height of stupidity.
Student loans often used for living expenses, cars, vacations, etc. Americans shouldn’t have to pay off student loans.
Get real you Socialist
The loans should NOT be canceled but I bet that rotten SOB will do it!
When if ever does the well run dry? The concept of fiscal conservancy has disappeared. Republicans and Democrats alike are giving handouts after handouts with no end in sight. We haven’t begun to feel the impact of covid on our economy and yet nobody is saying enough already. Even if we can continue to cut checks forgive debt and all based on nothing but the paper it’s printed on the dollar can not remain strong on the global market. When does inflation take over? Will we continue down the same path as Nazi Germany where literally people were paid three and four times a day and a loaf of bread literally costed a wheelbarrow full of cash if you could even find the bread. Are we not saddling our children and our children’s children with untenable debt? It’s become standard practice for local state and federal government no to balance the checkbook. Over spending is not a new concept in government but history clearly shows this is bad government and eventually someone pays the price. It won’t be the government that pays it will be us and our children. I can’t imagine banks just saying okay no problem we’ll eat the cost. So that leaves the taxpayers to pay the price. How can fifteen dollars an hour minimum wage help anyone if their taxes are fifty percent or higher? Listen carefully tax and spend Democrats because theirs nobody to bail out the federal government when tge lenders say no more. All we have to do is look at states like Illinois who played this game of ridiculous handouts and unfunded mandates. Illinois has a junk bind status and is in desperate financial trouble. Guess who’s going to pay for the ineptitude. That’s right a massive federal bailout which means you and I. Even those who had no say in Illinois elections are being burdened with Illinois ridiculous policies and you can bet California is soon to follow. Are we being led down this path intentionally? What’s the game plan here? I’ve always felt that the concept of globalists in the Democrat party was far fetched but this spending without proper funding seems to make the globalists ideology inevitable. Everything I’ve known about fiscal conservancy is no longer applicable. So either we are being lied to now or we’ve been lied to throughout our country’s history. I can’t imagine the entire planet being willing to accept the dollar in the manner it always has been when money is tossed around as of ot has no meaning. Because if it has no meaning in the United States then it won’t have any meaning in the rest of the world. If you feel none of this makes any logical sense you are not alone.
Student loans were for education not travel ,parties, The should be paid as I do not want higher rates on my loans to pay for this act. Biden needs to realise his acts have real consequences on the small people like loss of jobs with his they can find work no in their speciality. Lower wages having to contend with his illegals for work Please someone take him and Harris to the wood shed and give them a real thump. Socialism/ communism does not work. Enough of the left controlling this nation.