Has Biden just shattered our hopes for student debt relief? It’s complicated

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During a CNN town hall on Tuesday night, President Joe Biden made his position Incredibly clear about student loan forgiveness. Despite urging from members of the Democratic Party, Cancel up to $ 50,000 in student loans pro borrower, President Biden closed this idea, saying he disagreed with the proposal.

While at town hall, Biden was asked “what he will do” to secure a $ 50,000 loan. “I won’t be able to do that,” he replied. Biden’s reasoning quoted was that he did not believe that students who went to private universities like “Harvard and Yale and Penn” should cancel their debts and use their money to “provide for the early upbringing of young children from disadvantaged backgrounds “. . “

Instead, Biden’s government has proposed to waive $ 10,000 per borrower, as well as make community college free for every student and state schools for children whose families earn less than $ 125,000. On his first day in office, he signed an executive order suspending federal student loan payments until September 2021 due to the coronavirus pandemic. It should be noted that the President has the authority Eliminate student debt without the help of Congress, should it choose to do so.

Still, many people argue that providing just $ 10,000 doesn’t go far enough. Earlier this month, Democratic leaders including Senate Majority Leader Chuck Schumer (D-NY), Senator Elizabeth Warren (D-MA), Rep. Ayanna Pressley (D-MA), Rep. Alma Adams (D-NC), Rep. Ilhan Omar (D-MN) and Rep. Mondaire Jones (D-NY) a resolution reintroduced that calls on President Biden to cancel up to $ 50,000 in federal student loan debt for those earning less than $ 125,000 a year. Over 50 members of the House of Representatives endorsed the resolution, demonstrating growing support for tackling the student credit crisis.

“The last thing people should worry about is student debts,” Rep. Omar said at a February 4 press conference on the resolution. “We know that student debt is not the result of bad decisions or bad behavior. It is the result of a broken system that tells students to get an education or go to college to lead a stable life, but then don’t have the resources to afford that education. “

“I would never want anyone to go through this,” Vivienne, a 32-year-old with over $ 100,000 in student loan debt said Refinery29 last year. “I just know what it is like and that you can’t live a full life. This feeling of incredible shame makes your body sick. “

US student loan debt is currently at $ 1.67 trillion, and is on track to hit $ 1.75 trillion by the end of the year. Approximately 43 million Americans currently have student loan debt. Even in a phase of economic growth, almost one in four people lived were behind on their student loan payments.

Student loan debt also disproportionately affects Black and Latinx communities. “Debt relief would have a huge impact on those hardest hit by the coronavirus pandemic: Black Americans, senior borrowers, and college graduates,” said Alexis Goldstein, senior policy analyst at Americans for Financial Reform. said CNBC. That was also the result of a recent survey the majority of black voters want student loan debt eliminated and 40% said they would not be willing to vote for a candidate who does not support student loan cancellation.

Biden, who opposes paying off $ 50,000 in student loan debt per borrower, doesn’t mean that there is no hope for millions of Americans who are blessed with debt that they will eventually be forgiven their debts. But it does means it will not be the simple, sweeping forgiveness that many people have hoped for.

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