Democrats Are Pushing for Biden to Cancel $50,000 in Student Debt
On Thursday, Senator Elizabeth Warren, Senate Majority Leader Chuck Schumer, and Representative Ayanna Pressley brought up legislation that would require the Education Department to cancel student loan debt for millions of Americans. The Democrats cited that the cancellation of student debt would help reduce racial wealth inequality and stimulate the economy.
“The student debt crisis has always been a racial and economic justice issue,” Pressley said. Warren stated that canceling $50,000 in student debt would be “the single most effective executive action” Biden could do to “kick-start this economy” and “to help close the racial wealth gap.”
President Joe Biden ran on a promise to cancel up to $10,000 in federal student debt and has pushed for Congress to pass the policy. Democrats have responded by instructing Biden to cancel student debt through an executive order.
According to government data, the federal government currently holds around $1.5 trillion in student debt for about 43 million borrowers. $50,000 of forgiveness would eliminate student debt for an estimated 36 million Americans.
A student loan payment moratorium has been in effect since March 2020, when lawmakers passed the CARES Act.
However, critics of the plan to cancel student debt have cited that canceling student debt would indirectly benefit high earning Americans with several degrees. Democrats have responded by saying that $50,000 would help address those concerns.