Democrats urge President Biden to order $ 50,000 student debt relief | WJHL
WASHINGTON (NEXSTAR) – As millions of Americans face the burden of student loans, Democrats are pushing for the cancellation of some federal loans.
“Take a huge burden off so many people in America,” said Senate Majority Leader Chuck Schumer.
On Thursday, Schumer and other Democrats called on President Joe Biden to act. “To write off $ 50,000 in student debt,” Schumer said.
Democrats say the president should use executive power to write off federal student loan debt without any tax liability.
“Other presidents have done it. There is legal authority, ”Schumer said.
“Canceling student debt is the most effective executive step President Biden can take to help close the racial wealth gap,” said Massachusetts Senator Elizabeth Warren.
Warren claims that canceling student debt would increase homeownership, improve credit scores, create jobs, and more.
“Whether or not you have student loan debt, because it’s good for our economy,” Warren said.
While Democrats want up to $ 50,000 in forgiveness, the White House says for now that the president is only comfortable with a smaller amount.
“The President has supported and continues to support the cancellation of $ 10,000 of federal student loan debt per person in response to the COVID crisis,” White House Press Secretary Jen Psaki said.
Republicans, like Iowa Senator Joni Ernst, say the loan cancellation is unfair to other Americans.
“We’re going to forgive $ 50,000, but we’re going to put it on everyone’s back, I don’t think that’s the right avenue,” Ernst said.
Ernst says troubled borrowers should renegotiate interest rates or postpone their loans until they are financially stable.