Elizabeth Warren says student loan debt of $ 20,000 “may be $ 20 million” for those working at the minimum wage

Elizabeth Warren as a guest of The View on ABC, October 12, 2021

Lou Rocco / ABC via Getty Images

  • Senator Elizabeth Warren urged Biden to cancel the student’s debt after re-extending the suspension of payments.

  • “The suspension gave people a chance,” Massachusetts Senator told Teen Vogue on Monday.

  • During the 2020 campaign, Warren campaigned to wipe out at least $ 50,000 per federal borrower.

Senator Elizabeth Warren of Massachusetts said, “They don’t have enough extra money to pay for it,” so the $ 20,000 student loan debt for those who work at the minimum wage is “to $ 20 million.” It may be. “

In an interview with Teen VogueShe continued to encourage student loan forgiveness — the main platform for the 2020 presidential election.

Her remarks came as a result of a radio prayer about the Biden White House’s clearing of at least $ 10,000 in college debt. President Joe Biden’s Promise He made it during the campaign.Biden at the end of last year Extension of student loan payment suspension By May 1, 2022, 43 million federal borrowers will be given another three months of pandemic bailouts.

Warren said the three-time extended student loan grace shows “how important it is in the lives of millions of Americans.”

“The stop gave people a chance,” Warren told Teen Vogue on Monday. “This is a reminder of how student loan debt is now having a profound impact on our economy.”

“Currently, people suffering from student loan debt don’t leave their mother’s house, buy a car, buy a house, or start a small business,” she continued. “All of that is blocking our economy.”

At the micro level, Senators added that people are having a hard time paying off debt, partly because of interest rates, sometimes calling the federal government a “severe debt collector.”

“When people get into trouble, the government exacerbates that interest and then stays with them forever for repayment,” Warren said. “Some people say they went to school for a couple of years. [and] That didn’t work, but in total they borrowed $ 30,000 and now they are borrowing $ 130,000. I met someone who initially borrowed $ 50,000, but now pays $ 60,000 and still has $ 100 in debt. [thousand].. “

“This is a combination of compound interest and penalties. [does] When people are late, “she added.

Biden at a press conference last week Ignored the question Whether he fulfills the campaign’s pledge and cancels the $ 10,000 student debt. Previously, the president had diverted the responsibility for college debt relief to Congress and had not yet drafted a bill to revoke it.

“They haven’t sent him a bill yet,” White House spokesman Jen Psaki said.

Warren expressed her support for people to organize protests and strike debts if student loan forgiveness continues to be postponed.

“I’m doing my best to find all the humanly possible ways for young people to raise their voice,” she said. “The White House is making a decision now. We need to be asked — all of us.”

Read the original article Business Insider