A bold move could free millions of Americans from federal student loan debt. “It’s a problem that rises to the top, not just the 20s and 30s, but the 40s and 50s. Many parents are in debt. They would get relief, ”said Senate Majority Leader and Democrat Chuck Schumer. The idea is being launched on Capitol Hill, but for now, the question is how to go about it. “Canceling student debt is the most effective executive step President Biden can take to improve the economic outlook for tens of millions of young Americans,” said Massachusetts Senator Elizabeth Warren. Democrats say President Biden has the power of the pen through executive action to make it happen. The White House says it prefers Congress to write it down and pass it. The president supports the idea of ​​forgiving $ 10,000 per borrower. Another plan backed by multitudes of Democrats in both chambers calls for $ 50,000 per borrower. “This pandemic has done it all, but it is impossible to ignore the fact that we can and must take bold steps to address the inequalities and disparities in our country and bring much needed relief to our communities,” said Senator of the Massachusetts Ayanna Pressley. Some economists say the boost may not be as big as hoped. Cancellation of $ 50,000 in debt per borrower would cost around $ 800 billion and only give economic activity a small boost in GDP. Estimates say that number would make 36 million Americans debt free. “We have to do this,” Schumer said. This plan, at present, only applies to student loans guaranteed by the federal government. A private loan plan would still need to be developed. Like former President Trump, President Biden has already extended the break in payments and interest on federal student loans until October 1.

A bold move could free millions of Americans from federal student loan debt.

“It’s a problem that rises to the top, not just the 20s and 30s, but the 40s and 50s. Many parents are in debt. They would get relief, ”said Senate Majority Leader and Democrat Chuck Schumer.

The idea is being launched on Capitol Hill, but for now, the question is how to go about it.

“Canceling student debt is the most effective executive step President Biden can take to improve the economic outlook for tens of millions of young Americans,” said Massachusetts Senator Elizabeth Warren.

Democrats say President Biden has the power of the pen through executive action to make it happen. The White House says it prefers Congress to write it down and pass it. The president supports the idea of ​​forgiving $ 10,000 per borrower. Another plan backed by multitudes of Democrats in both chambers calls for $ 50,000 per borrower.

“This pandemic has done it all, but it is impossible to ignore the fact that we can and must take bold steps to address the inequalities and disparities in our country and bring much needed relief to our communities,” said Senator of the Massachusetts Ayanna Pressley.

Some economists say the boost may not be as big as hoped. Cancellation of $ 50,000 in debt per borrower would cost around $ 800 billion and only give economic activity a small boost in GDP. Estimates say that number would make 36 million Americans debt free.

“We have to do this,” Schumer said.

This plan, at present, only applies to student loans guaranteed by the federal government. A private loan plan would still have to be developed. Like former President Trump, President Biden has already extended the break in payments and interest on federal student loans until October 1.


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