Anyone with student loan debt knows that it sits on your chest, making it difficult to ever see any kind of relief. However, it’s a burden that we have to deal with. Although the Democrats have long promised to make it go away, it’s not realistic. Who would pay for it? Would it even be fair for the debt to just disappear?
Now that there’s a Democrat in office, it’s time to see if the student loan debt promise will become a reality.
Biden hasn’t even been officially identified as the president-elect by the Electoral College and he’s already dealing with Dems in high positions demanding things of him.
The one in the front of the line? Chuck Schumer.
The Senate Minority Leader has called on Biden to use an executive order to cancel student loan debt.
Schumer wants to see an FDR-style agenda within Biden’s first 100 days in the White House. In order to make that happen, Schumer is asking Biden to sidestep Congress on a major issue – canceling out billions of dollars in student loan debt.
Chuck Schumer and Elizabeth Warren have been talking heavily about being able to cancel out student loan debt — $50,000 per borrower. Would that be enough to wipe out all student loan debt? No. But, it would certainly make an impact for many.
Is Biden interested? Probably not. He’s talked about forgiving $10,000 per borrower as part of a coronavirus relief package.
This is crazy that such an important thing as student loan debt would be done through executive order. If Trump had done such a thing, most of Congress would be up in arms.
The question really comes down to, is it legal?
With all of the legal prowess that Schumer and Warren have, it appears that he does have it. Schumer has said during the interview that, “We believe that Joe Biden can do that with the pen as opposed to legislation.”
Student loan debt is the largest amount of non-mortgage debt across the country. It has been estimated that one in six Americans owe on a federal student loan. The debt is somewhere around $1.7 trillion – and the debt has doubled over the past decade.
Many of the student loans can be placed into forbearance when times are tough – and that’s where they’re all sitting right now thanks to the coronavirus. However, there are also ways to reduce the payments. Income-driven plans allow people to pay on the loans at a rate that is comfortable given their income. The problem is that those payments often don’t even cover the interest that is being charged. People could be paying hundreds of dollars a month only to see the loan amount grow because of the interest.
Student loan debt is a bipartisan issue. Republicans and Democrats alike know that it is a major burden for Americans. It has to be addressed because many feel as though they’re being crushed by the loans. Particularly in households where two adults have loans, it can make it difficult to make payments and live comfortably.
So, what would it look like if Schumer and Warren get their way? If Biden were to take the pen to paper and make an executive order to wipe away $50,000 in student loans for every American, it could eliminate billions of dollars of debt.
Would it have an impact on the federal government’s budget? Absolutely. The government is the one responsible for providing most of the money. It’s why student loans are not discharged during a bankruptcy – and if someone defaults on their loans, it can lead to wage garnishment, impact Social Security benefits, and more.
Forgiving it is great, but should Biden have that kind of power? And how are billions forgiven going to affect federal spending budgets? It’s definitely the Dems wanting to flex their power early on and provide a gift to show just how amazing Biden is. It’s a bribe of the biggest kind.