Progressives and student loan holders are pushing for relief from the debt of student loans….
During the race for the Democratic nomination and General election the idea of student loan debt being ‘forgiven’ was floated ….We’re taking about a ‘LOT’ of outstanding loans money….The money could be a big help for the people who owe it and help for the ailing economy….
THAT wasn’t forgotten…
But Joe Biden isn’t excited about doing THAT on his own and Republicans in the House and Senate are gonna be hard to convince to do this with their support…
People want Biden to take up the cuts on his own….
But Biden is well aware that theAmericans that need help with loan debt are NOT the poorest that need the most government help….
President-elect Joseph R. Biden Jr. is facing pressure from congressional Democrats to cancel student loan debt on a vast scale, quickly and by executive action, a campaign that will be one of the first tests of his relationship with the liberal wing of his party.
Mr. Biden has endorsed canceling $10,000 in federal student debt per borrower through legislation, and insisted that chipping away at the $1.7 trillion in loan debt held by more than 43 million borrowers is integral to his economic plan. But Democratic leaders, backed by the party’s left flank, are pressing for up to $50,000 of debt relief per borrower, executed on Day 1 of his presidency.
More than 200 organizations — including the American Federation of Teachers, the N.A.A.C.P. and others that were integral to his campaign — have joined the push.
The Education Department is effectively the country’s largest consumer bank and the primary lender, since 2010, for higher education. It owns student loans totaling $1.4 trillion, so forgiveness of some of that debt would be a rapid injection of cash into the pockets of many people suffering from the economic effects of the pandemic.
“There are a lot of people who came out to vote in this election who frankly did it as their last shot at seeing whether the government can really work for them,” said Representative Pramila Jayapal, Democrat of Washington and the chairwoman of the Congressional Progressive Caucus. “If we don’t deliver quick relief, it’s going to be very difficult to get them back.”
Many economists, including liberals, say higher education debt forgiveness is an inefficient way to help struggling Americans who face foreclosure, evictions and hunger. The working poor largely are not college graduates — more than 70 percent of currently unemployed workers do not have a bachelor’s degree, and 43 percent did not attend college at all, according to a report by the Committee for a Responsible Federal Budget.
While many Black students would benefit greatly from even modest loan forgiveness, debt relief overall would disproportionately benefit middle- to upper-class college graduates of all colors and ethnicities, especially those who attended elite and expensive institutions, and people with lucrative professional credentials like law and medical degrees….