The Washington-Bayden administration has entered the White House with the aim of reducing the debt burden on student loans, especially in the additional financial burden of the coronavirus pandemic.
On the first day of his inauguration, President Joe Biden signed an executive order to extend the payment of federal loans for suspended students enacted by the previous administration as part of the COVID-19 bailout. Liberal activists and legislators urged the president to go further and cancel his student loan debt, but he firmly stated that he did not believe he was authorized to do so by executive order.
That changed on Thursday when White House Chief of Staff Ron Klain said Biden had asked the Secretary of Education to investigate the president’s authority to revoke student debt.
Next Steps in Infrastructure Planning: How is Biden going to pass Congress?
Critics of student loan debt exemption, including conservatives and some liberals, argue that it would unjust enrich high-income earners in college education, and individuals who take out loans are those regardless of circumstances. Claims to be responsible for repayment.
Promoting Biden Student Loan Changes
Biden was hesitant to bypass Congress to cancel his student loan debt, but since the day of his campaign, the government has said it needs to help those who “debilitate” student debt.
“I understand the impact of debt,” he said at CNN’s Town Hall in February.
Mr Biden said the interest on student loans must be 0%. This is a move he enacted in parallel with the freeze on repayments until September. He expanded student loan allowances for public sector workers and canceled debt for students fooled by commercial schools.
He is hesitant to cancel his mortgage debt for those who attended top-notch schools. Biden said the federal government should not allow the debt of students attending elite schools such as “Harvard University, Yale University and Penn University”.
Trump and Biden have frozen federal student loans: Does the borrower need to pay or suspend before unzipping?
On Thursday, Biden said Biden had asked Secretary of Education Miguel Cardona to make a note about the president’s executive authority to cancel the student’s debt.
“He will look at that legal authority, look at the policy issues surrounding it, and make decisions,” Crane said in an interview with the Politico Playbook.
Enacting student loan forgiveness through Congress can be difficult in an evenly divided Senate.
University costs are skyrocketing
College costs have risen steadily over the last few decades, and higher education price tags are barely reachable without the support of many student loans.
Students are told that affluent life depends on higher education. First grader Responses to the UCLA National Survey The reason for going to college in 2019 was to make more money and get a better job than students in the last 45 years. However, the high costs of college increase the debt that graduates have to overcome when starting their careers.
Analysis of US News and World Report Among the ranked national universities, the average tuition fees for private universities have increased by 144% over the last 20 years. 165% at public universities for out-of-state students. 212% at public universities for students in the state.
Data collected by University council Inflation-adjusted, it shows that over the last 20 years, average tuition and tuition at public four-year colleges has increased by more than $ 5,000, and private colleges have increased by more than $ 13,000 per year.
This year’s College Board found that the average first-time full-time student at a public four-year college must pay $ 14,850 for tuition, fees, and boarding after the grant. The average student in a private institution should cover $ 29,110 after the grant. This does not include additional costs for books, consumables, shipping, etc.
Americans have about $ 1.7 trillion in student loan debt. According to Federal Reserve data.. According to the average 2019 graduates of private or public universities have an average debt of $ 28,950. Institute for University Access and Success..
“The higher the cost of a university, the more the degree becomes a measure. [of] Privilege rather than ability. If we make public universities free of tuition and cancel student loan debt, our country will be better, “republican Rep. Alexandria Ocasio Cortez tweeted.
Liberalists want Biden to allow $ 50,000 in student loan debt
Democrats urge Biden to promise $ 50,000 in federal student loans per borrower because of generations of college graduates’ borrowing, and use the president’s actions to bypass Congress I put pressure on it.
Student loan debt reached a record high of over $ 1.7 trillion in 2020.The average graduate reached a loan debt record of over $ 30,000 for the first time in 2019 US News and World Report Tracked data. This is an average of over $ 6,000 higher in debt than graduates held 10 years ago.
Former presidents, including Barack Obama and Donald Trump, provided student debt relief.
Mr Biden said student debt exemptions need to be justified against other policy priorities.
“Is it permissible rather than spending that money to provide money for early education to toddlers from underprivileged situations?” Biden asked at CNN’s Town Hall.
Senator Chuck Schumer (DN.Y.) and Senator Elizabeth Warren (D-Mass.), Senator leaders, said they believed the president had the power to cancel the $ 50,000 loan. I urged him to do so immediately.
“Student debt exemptions significantly increase black and Latin household wealth, bridge racial wealth gaps, and affect millions of people struggling between this pandemic and the recession, according to research. It can provide immediate relief and boost the consumer-led economy, which can lead to improved home purchase rates and housing stability, higher college completion rates, and increased formation of small and medium-sized businesses. Economic stimulus measures “.
“Student loan borrowers were already at stake, even before the coronavirus pandemic disrupted our economy,” Warren said.
Ocasio Cortez opposed Biden’s claim that student debt forgiveness may come at the expense of other educational programs. “There is no trade-off between early childhood education and student loan forgiveness. We can have both,” she said.
“Many people don’t fully feel the $ 10,000 forgiveness until they spend 10 years paying off the other $ 20,000 or more after President Biden is over,” Casio Cortez tweeted. did. “Democrats should support policies that people can feel as soon as possible. They need to grow.”
This article was originally published in USA TODAY: Student Loan Forgiveness: Biden Considering Student Debt