Biden wrote off $17 billion in student loan debt why not get credit


More than 43 million Americans have student loan debt, representing a total of approximately $1.6 trillion still owed to the federal government, according to a MeasureOne report in July 2021. by NerdWallet.

President Joe Biden has relieved nearly 700,000 people for a total of more than $17 billion in student loan forgiveness, but many people, including those who voted for him in 2020, are unhappy with the way he handled the situation.

Federal student loans have been suspended since March 2020 at the start of the COVID-19 pandemic, but are scheduled to resume on May 1, after the Biden administration extended it from February 1. according to CNN.

Biden announced the decision to extend the pause on Dec. 22, 2021, and said in a statement at the time that the government was working on a way to get people ready to start repaying their loans.

“Meanwhile, the Department of Education will continue to work with borrowers to ensure they have the support they need to make a smooth transition to repayment and advance economic stability for their own households. and for our nation,” Biden said in the statement.

In February, Senate Majority Leader Chuck Schumer and Massachusetts Sen. Elizabeth Warren both said Biden should keep his promise to forgive $10,000 in federal student loan debt for all 43 million borrowers. White House press secretary Jen Psaki said Biden still supported the plan, but was “calling on Congress to craft the proposal.” according to CNN.

“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,” Psaki said.

Jennifer Lewis, 57-year-old nurse practitioner in Washington state told CNN that she feels like Biden is “breaking his promise” as she and many others are still struggling with their student loan debt.

“If he were to run again, I would think twice about voting for president,” Lewis said.

As the May 1 deadline approaches, a number of politicians, including Schumer and Sen. Warren, are now pushing further for Biden to write off $50,000 per borrower. However, Michelle Dimino, senior education policy adviser at Third Way, told CNN there was still no clear plan to write off all student loan debt.

“I think it’s important to keep in mind that there is far from a consensus view among Democratic members of Congress and Democratic voters that large sums of debt should be forgiven,” Dimino said.

According to a report from California Policy Lab.

White House Chief of Staff Ron Klain says Pod Save America earlier this month, what Biden’s next steps will be to cancel or continue to suspend student loan debt payments.

“The president is going to consider what we should do on student debt before the break expires, or he will extend the break,” Clain said.

Sheila Blair, former chair of the FDIC and former assistant secretary of the US Treasury for Financial Institutions, said in a forum on Yahoo Financethat it is time for the administration to make a decision.

“Klain is right that the president needs to decide on student debt cancellation before deciding when to resume student loan repayments, but he’s wrong to keep this cloud of uncertainty above the heads of more than 40 million student borrowers,” Blair wrote. “They need to know if and when their loan obligations will resume. With each delay, it becomes harder for them to prepare.”


Comments are closed.