A group of Democratic lawmakers led by the Senate majority leader Charles Schumer
Chuck SchumerSenate Appoints First Black Senate Secretary OVERNIGHT ENERGY: Senate Committee Advances Granholm’s Appointment to Lead Energy | EPA nominee Regan promises ‘urgency’ on climate change at confirmation hearing | Omar asks Biden to block the pipeline being built in Minnesota. Biden’s approval rating is 49 percent in the new Quinnipiac poll. MORE (NY) and Sen. Elizabeth Warren
Elizabeth WarrenTop Democrats ask Yellen to crack down on dark money groups On The Money: Biden calls Dems and asks for big bill COVID | Choice of Biden at SEC is left out in the course of the GameStop drama Bezos leaves the post of CEO of Amazon Night defense: Pentagon chief fires hundreds of advisory panels Choice of defense discusses Trump’s transition obstacles | Aircraft carrier returning home after 10 months deployment MORE (Massachusetts) reintroduced a measure on Thursday asking President Biden to forgive up to $ 50,000 in student debt held by the federal government per borrower.
The resolution by Schumer, Warren and Democratic Reps. Ayanna Pressley
Democrats of Ayanna PressleyHouse press Biden on vaccine distribution to people of color Communities of color being left behind in vaccine implantation Legislators remember actress Cicely Tyson MORE (Pasta.), Ilhan Omar
Ilhan OmarHouse approves budget resolution for COVID-19 package NIGHT ENERGY: Senate Committee advances Granholm’s nomination to lead Energy | EPA nominee Regan promises ‘urgency’ on climate change at confirmation hearing | Omar asks Biden to block the pipeline being built in Minnesota. Omar criticizes the GOP for ‘money laundering’, false equivalence with Greene MAIS (Minn.), Alma Adams
Alma Shealey AdamsRemember number of black women elected to Congress in 2020 Armed Trump supporter arrested at North Carolina polling place From HBCUs to Capitol Hill: How Congress can play an important role MORE (NC) and Mondaire Jones (NY) are not legally binding, but would serve as a formal endorsement by Congress of a popular but polarizing progressive proposal. A similar resolution was presented at the previous Congress.
“We will not give up until we do, until $ 50,000 of debt is forgiven from all students in the country,” said Schumer during a news conference on Thursday. “Lets do this.”
Biden has faced increasing pressure from progressives and defenders of borrowers to unilaterally eliminate a large portion of the $ 1.6 trillion student loan debt owed by the federal government, owed by more than 43 million people.
White House Press Secretary Jen Psaki
Jen PsakiOn The Money: Biden pledges 400 checks, but open to eligibility limits | House approves budget resolution for COVID-19 package | McConnell seeks to inflict political suffering on budget votes. Night healthcare: Biden commits to 400 checks, but open to eligibility limits | CDC Director: Teacher vaccination ‘not a prerequisite’ for safe school reopening | Coronavirus infections, hospitalizations falling Psaki aims to clarify Biden’s comment by praising the ‘vast majority’ of FBI agents MORE reiterated Biden’s previous support for $ 10,000 student debt relief per borrower through legislation, but cast doubt on whether he would take executive action to do so if Congress did not send him a bill.
“Debt relief is undoubtedly an important priority for the president,” said Psaki, adding that Biden extended a Trump-imposed pause on federal government student loan payments and interest accrual until September, hours after his possession.
“[Biden] already took a step in executive action on the first day and would expect Congress to take the next steps, “added Psaki.
Supporters argue that Biden has the authority and responsibility to forgive student debts while the coronavirus pandemic clouds the United States economy and imposes the greatest burden on those least able to pay for it.
“The data shows that canceling student loan debt would result in higher property rates, more housing stability, better credit scores, higher income, higher GDP, more formation of small businesses and more jobs,” said Warren, who in December said that Biden has a “moral obligation” to eliminate student loan debt.
“Canceling student loan debt is good for you, whether you have student loan debt or not, because it is good for our economy,” said Warren.
Proponents of debt forgiveness say it would also help to close the racial wealth gap, given the relatively higher rates of student loan defaults between black and Hispanic borrowers.
“The student debt crisis has always been a matter of racial and economic justice, but for a long time the narrative has excluded black and Latin communities and the ways in which that debt has exacerbated the racial and economic inequalities deeply rooted in our country,” said Pressley, member of the Chamber’s Financial Services Committee.
The resolution asks Biden to instruct the secretary of education to use the provisions of the Higher Education Act and to forgive debts of up to $ 50,000 per borrower. He also asks Biden to order the IRS to exempt taxes on canceled loans, as debt forgiven is usually treated as taxable income in the U.S.
The plan proposed in the resolution would eliminate about 80 percent of student debt held by the federal government, according to an analysis by Beacon Policy Advisors, a DC research firm.
Passing the resolution would be a major symbolic victory for debt forgiveness advocates and could help increase pressure on Biden to follow suit.
Even so, Biden has already attracted Republican fire by signing dozens of executive actions shortly after taking office and would likely be criticized by the Republican Party for forcing itself on a huge debt forgiveness plan.
Economists are divided over the potential benefits of broad loan forgiveness, as even some liberal analysts argue that eliminating student loans is not the most effective way to stimulate the economy.
It is also questioned whether the secretary of education has the legal power to forgive student debts. Former Secretary of Education Betsy DeVos
Betsy DeVosFormer Trump officials find labor market difficult The conversation about forgiveness intensifies as Trump approaches the last 24 hours at the Azar office, in a letter of departure to Trump, says rioting on the Capitol can ‘tarnish’ the legacy MORE considered whether she had the authority to forgive student loan debt during the start of the coronavirus pandemic in March, but Trump administration lawyers determined it would be illegal, according to a memo released last month.
Schumer, however, expressed confidence that debt forgiveness advocates could boost enough momentum to convince Biden to forgive a certain amount of debt. Schumer added that he and Warren discussed the issue with Biden and his economic advisers several weeks ago, and the president did not object to their campaign.
“I told the president when we started this that we would try to get the American people behind it to support them when they decide – hopefully – to do that. And he had no problems with that, ”said Schumer.
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