Schumer leads plan to write off student loan debt using President Biden’s executive powers – The Ticker
US Senator and Majority Leader Chuck Schumer is leading an initiative for President Joe Biden to use his executive power to write off up to $ 50,000 in student loan debt per student.
Any loan that is federal or supported by the federal government falls under this plan. It would also apply to debts incurred by the parents of a student. Student loans represent 93% of school debt, according to the Board of Governors of the Federal Reserve System.
“For far too many students and for so many graduates many years after school, federal student loans and student loans in general are becoming a burden forever,” Schumer said in a phone call with students from New York. “It’s all over the country. It’s all over our state.
Schumer said Biden and Education Secretary Miguel Cardona had administrative authority to write off student loan debt under the Higher Education Act.
An executive order from Biden would bypass the need for bipartisan approval from Congress.
“It means we don’t have to go through Congress,” he said. “We don’t have to worry about the 60 votes. [Biden and Cardona] can do it on their own.
According to Schumer, 2.4 million New Yorkers owe $ 89.5 billion in federal student loans. The average amount of student debt is $ 38,000 for New York City residents and $ 34,000 for New York State residents.
“NY’s numbers are higher than the national average,” he said. “The issue of student debt is particularly relevant to NY because we are more affected than many other states. “
There is nearly $ 1.6 trillion in student loan debt in the United States, which is bigger than credit card and car debt.
“The college should be a ladder to the top,” he said. “But student debt often weighs on students. It’s an anchor and we have to do something. It wasn’t like that 10 or 15 years ago. It’s good, much worse.
Schumer’s reasoning behind this plan is rooted in how debt influences the lives of students.
“It affects their abilities,” he said. “What kind of jobs they get, some of them will delay starting a family, many will have to delay buying basic necessities like a car or living in the place they want to live because of of the rent. It totally disrupts people’s lives.
He argued that debt cancellation would help stimulate the economy.
“Instead of paying the federal government $ 400 a month, young people and middle-aged people who still have debts will use this money to go out to restaurants, go on vacation, buy a car or a household appliance,” a- he declared.
Schumer and Senator Elizabeth Warren, who also heads the plan, met with Biden.
According to Schumer, Biden is considering the plan and supporting Schumer and Warren’s campaign. However, he is reluctant to use a decree and is more in favor of passing a law.
“If the president has to reject it, we will try to pass it through legislation, but it is much easier for him to just sign the decree,” he said. “But we won’t give up if he doesn’t sign the order. If he says $ 10,000, we will try to get the next $ 40,000 through legislation.
He and a number of senators passed a resolution urging Biden to execute the plan.
Schumer said Senate Democrats are also looking for ways to reduce the cost of education before more students go into debt.
The push to write off student loan debt comes after the US bailout, which was recently passed by the Biden administration. This bill included a provision that made the student loan exemption tax-free until 2026.
In addition, the bill allocated $ 2.6 billion to New York colleges and universities to address the challenges of the pandemic. Half of the amount allocated to each school must be distributed to students in the form of financial aid.