In recent news, President Joe Biden has made plans to try to cancel up to $50,000 of student debt for every American that has it.
He has asked his Secretary of Education if it is legally possible, the administration is now looking further into the proposal.
Ron Klain, White House Chief of Staff, tells Politico Playbook that Biden was currently trying to figure out how to wipe out these borrowers’ finances they have racked up from the American educational system.
At first, he had proposed that he wanted to take away $10,000, yet others barter with the option of taking away $50,000 for each student that owes debt. Official such as Rep. Alexandria Ocasio-Cortez and Senate Majority Leader Chuck Schumer have pushed forward for a higher debt relief.
As of right now, Biden has extending the pause on student loan interest and collections, allowing borrowers to still pay but without the interest added on top of their current balance.
Klain continues that “he’ll look at that legal authority, he’ll look at the policy issues around that and he’ll make a decision.”
Jen Psaki, press secretary, ignores queries about why there was a $40,000 difference from the initial $10,000 Biden had brought up. She says “That’s something Congress could take an action on, and he’d be happy to sign.
We’re still taking a closer look at … our options on student loans. This includes examining the authorities we have, the existing loan forgiveness programs that are clearly not working as well as they should. There’s a lot of steps we’re looking at, and we’ll continue to review those and be in touch… about our process.”
Democrats have pushes for the Biden administration to alleviate some of their financial burdens, and they have already had plans to “cancel billions of dollars in student loan debt, giving tens of millions of Americans an immediate financial boost and helping to close the racial wealth gap.
This is the single most effective executive action available for a massive economic stimulus.”
Not only was Biden’s administration thinking about increasing the amount of debt relief that students would receive, but they already announced that there would be a pause on the student loan payments.
More information will be revealed over time.
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