Three Democratic senators urge President Joe Biden to go further than he can with student loan relief, including delaying any debt cancellation.
Senators Elizabeth Warren, Chuck Schumer, and Raphael Warnock, according to people familiar with the subject, are demanding that Biden delay any debt forgiveness by executive action until they can meet with him.
Democrats Want Biden To Go Big on Student Loan Forgiveness
Following the President's statements that he is not considering $50,000 in debt cancellation for federal borrowers, the three lawmakers want one final chance to press Biden to go as far as possible with relief. According to Politico, the offices of Schumer and Warnock did not reply to Insider's request for comment right away, and a Warren representative declined to comment.
Schumer, Warnock, and Warren have continuously advocated for $50,000 in relief, and they have long claimed that Biden should use his executive authority to eliminate student debt. However, Biden has expressed reservations. On the campaign trail, he promised to cancel $10,000 in student debt, but he expressed reservations about his ability to forgive bigger sums of debt early in his administration.
Now, it appears that he feels he has the ability to legislate extensive relief, as he recently told reporters that a decision on that relief will be made in the coming weeks, though it's unclear how broad it will be or whether it will be subject to income constraints.
However, Warren and her colleagues have argued that the more relief, the better, as per the Insider. According to Warren's office, whereas canceling $10,000 in student debt would wipe out debt for a third of borrowers, canceling $50,000 would wipe out debt for 72 percent of borrowers, or 30 million Americans.
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Joe Biden's Plan To Cancel Student Loan Debt May Impact The US Inflation
Several experts have cautioned that President Joe Biden's plan to eliminate student loan debt might lead to greater inflation and perceived inequality. In a press conference held late last month, Biden stated that he is considering forgiving "some" student loan debt, as per Fox News.
According to Douglas Holtz-Eaken, former Director of the Congressional Budget Office, erasing student loan debt will do little to halt growing inflation in the United States. At the Milken Institute 2022 Global Conference, economist Nicholas Eberstadt told Fox News Digital that a "magical, universal debt relief" would instead damage people it was supposed to aid.
The current pause in student loan repayments has provided financial benefits for millions of people, but it has also "created uncertainty," according to Phillip Swagel, the current director of the Congressional Budget Office.
"This action has created a gulf between those who paid their student loans, those who did not take out student loans for college, and those who did not go to college," Swagel said. Biden endorsed removing $10,000 in student debt for most students during his presidential campaign, but his legal ability to do so by executive order has been questioned.
Jen Psaki, the White House press secretary, stated last week that an income ceiling for student loan forgiveness was being considered. Due to the COVID-19 pandemic, Biden has extended the moratorium on student loan payments until August 31.
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