Over 80 Democrats Say It’s Time for Biden to Cancel $50,000 of Student Debt

Over 80 Democrats demanded President Joe Biden cancel student debt and release an Education Department memo indicating his legal authority to do so. This effort was led by Rep. AyannaPressley (D.Massachusetts), Senators Elizabeth Warren, D-Massachusets, and Chuck Schumer (D.New York).

In a letter to President the lawmakers wrote that Biden should immediately cancel up to $50,000 of student debt per borrower – a move that would boost the economy and provide a lifeline to the millions of Americans with student loans. The lawmakers suggested that the president must act immediately as student loan payments are rising. Due to restart in three month.

“Canceling $50,000 of student debt would give 36 million Americans permanent relief and aid the millions more who will eventually resume payments their best chance at thriving in our recovering economy,” the lawmakers said. “In light of high COVID-19 case counts and corresponding economic disruptions, restarting student loan payments without this broad cancellation would be disastrous for millions of borrowers and their families.”

Data released Thursday showed that the U.S. economy was at its weakest point. on an upswingDespite the pandemic, student loans were paid in full last year. However, this could be impeded by student loan payments being re-paid. The data also demonstrates that the payment pause, which was in place for all of 2021, didn’t stop the economy from beginning to recover from the impact of the pandemic.

Meanwhile, resuming payments will have an enormous impact on many borrowers’ lives. Thousands of borrowersMany people have reported that student loans take up a large part of their income, making them unable to pay for essentials and bills. A recent reportWarren and Schumer discovered that borrowers will lose $85 billion annually if loan payments are resumed.

The burden of student debt is holding back nearly an entire generation from being able to make financial decisions freely, even impeding upon borrowers’ ability to buy a house. You can cancel this debt Potentially, homeownership rates could riseCredit scores and gross domestic product (GDP) would likely increase.

“[T]he enduring weight of student loan debt has negated opportunities for many borrowers to truly transform their lives and our country,” the lawmakers wrote. “More than 80 percent of borrowers with student loan debt report that it holds them back from being able to afford a home. Without this debt, many would be in a better position to begin saving for homeownership as well as retirement and starting a business.”

Biden was also asked by the lawmakers to release a memo that would assess whether cancelling student debt via executive order is legal. The memo was prepared by the Education Department in April. However, the administration refused to acknowledge it publicly for several months. The existence of the memo was finally confirmed. The Debt Collective discovered these detailsThrough a Freedom of Information Act request. However, the contents of the document were completely deleted.

“Publicly releasing the memo outlining your existing authority on cancelling student debt and broadly doing so is crucial to making a meaningful difference in the lives of current students, borrowers, and their families,” the lawmakers wrote. Debt activists have also been organizingBiden is being pressured on the issue.

The Biden administration’s refusal to release the memo has led debt activists to speculate that the document confirms that the president has the legal authority to cancel student debt with a stroke of his pen – but that he doesn’t actually want to do so.

Biden, on the campaign trail, promised to cancel $10,000 of student debt per borrower. This promise has been repeatedly criticized. Biden was elected last week. dodged a questionA journalist asked him about his plan for cancelling student loans during a press conference. The president replied to the second question, but said nothing about student loans.

Many progressives and activists say that even cancelling up to $10,000 of debt per borrower wouldn’t be enough. Student debt cancellation advocates like Sen. Bernie Sanders (I-Vermont), who signed on to the Democrats’ letter this week, Biden has been encouragedYou can cancel your student debt completely.