Posted on 02/05/2021 5:51:19 AM PST by Red Badger
KEY POINTS:
The Senate’s top Democrat, Chuck Schumer of New York, along with Sen. Elizabeth Warren, D-Mass., and other Democrats on Thursday put forward a resolution calling on President Joe Biden to forgive $50,000 in student debt for all borrowers.
The plan would cancel all of the debt for 80% of federal student loan borrowers.
Women and people of color would be among the biggest winners
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The Senate’s top Democrat, Chuck Schumer of New York, along with Sen. Elizabeth Warren, D-Mass., and other Democratic legislators on Thursday, reintroduced a resolution again calling on the White House to forgive $50,000 in student debt for all borrowers by executive action.
“During a time of historic and overlapping crises, which are disproportionately impacting communities of color, we must do everything in our power to deliver real relief to the American people, lift up our struggling economy and close the racial wealth gap,” Schumer said in a statement.
“Democrats are committed to big, bold action, and this resolution to cancel up to $50,000 in federal student loan debt is one of the strongest steps the president can take to achieve these goals.”
The resolution, first made in the Senate last year, was also introduced in the House of Representatives by Rep. Ayanna Pressley, D-Mass.; Rep. Ilhan Omar, D-Minn.; and Rep. Mondaire Jones, D-N.Y.
More from Personal Finance: Millions would get pay raise from a $15 minimum wage Many have waited over a month for last round of unemployment aid How the average stimulus check could change under Biden vs GOP plans
Although Biden has expressed hesitation about canceling student debt through executive action, and didn’t include any debt forgiveness in his outline for another $1.9 trillion Covid stimulus package, he is under mounting pressure from members of his own party to take action.
WATCH NOW VIDEO03:06 Four methods to pay off your student loans early Tens of millions of borrowers are also looking to the new president to ease some of their debt burden. On the campaign trail, Biden vowed to forgive some of their loans. Around 3 in 4 Americans support $10,000 in student loan forgiveness, according to the latest College Investor survey.
“We took to heart his promise to make it a core priority,” said Nate Wlodarchak, 37, a Denver-area scientist who studies tuberculosis and owes around $12,000.
Here’s who would benefit the most from $50,000 in student loan forgiveness.
The numbers Canceling $50,000 for all borrowers would shrink the country’s outstanding student loan debt balance to $700 billion from $1.7 trillion.
The plan would forgive all of the debt for 80% of federal student loan borrowers, or 36 million people, according to higher education expert Mark Kantrowitz.
To be sure, there are a rising number of student loan borrowers who owe more than $100,000 and would still be left with large balances even after the $50,000 in forgiveness.
The plan would also not help borrowers with private student loans.
They wont even give out the $2,000 stimulus check. What makes people think they will do this. Its all smoke and mirrors to keep people on their side while they consolidate power.
Why stop there? Why not forgive all mortgages? All car loans? All credit card debt? Heck, let’s make EV-RE-THING free. Then nobody will ever have to work ever again, and net pay any taxes, either. Put it all on the big corporations.
Uhhhhhh, no. It would transfer that debt to their fellow citizens.
And then in a couple of years, the debt of more students will be transferred to their fellow citizens and so on and so on and so on.
Think LBJ. “we’ll have the n-ggers vote for a hundred years.” pretty smart. This is what we’re up against.
I really look forward to paying off my bosses debts. That’s just great.
Do they still get a bail out if they didn’t graduate? Don’t know how the loan works.
Inflation is hitting the vote market really, really hard.
The Largest student loan borrowers are Doctors, Dentists and Lawyers.
Are they getting a clean slate?
My wife just finish paying her college loans off, can she get a refund?
And won’t this incentivize kolleges to charge even more money for edukashun?
Because they've done it before. Cancelling the debt does not mean the colleges and universities no longer collect the monthly payments. They've already got the money. This is debt is transferred to you and men not cancelled altogether.
And to those of you who worked hard and paid your student loans off. Or worked through college while others were partying...
HOW DOES IT FEEL?
Bend Over Biden is giving one to the working people again.
BOHICA!
No, she must work harder to pay off the additional Trillion Dollars of national debt this will cost the taxpayers.
Not only that: I wonder how all the plumbers, electricians, welders, etc., feel about assuming the debt of all those Medieval German Polka History students who are now making them lunch and asking if they want fries with that.
Why not cancel their car loans as well...
Debt discharge is taxable income. The students will get a tax bill. It still a good deal to pay tax on $50k and be done. Not a good deal for taxpayers in general.
This is a vote buying scheme and I hope it backfires in a major way with the millions who do not have student loans forgiven.
My daughter worked and saved since she was 14. Never spent money in high school. Got college credits by working hard while in high school. Worked hard in college and made money. Got a engineering degree in 4 years.
Now she has to pay for the bums who screwed around and got a gender studies degree in 6 years with a large debt load?
My disgust for Democrats reaches new highs.
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