Biden rejects Democratic plan to write off $ 50,000 in student loan debt
- President Joe Biden has rejected a Democratic plan to write off up to $ 50,000 in student loan debt.
- “I won’t be able to do it,” he said on Tuesday, adding that he didn’t think he could do it unilaterally.
- The proposal was recently presented by Senators Elizabeth Warren and Chuck Schumer.
President Joe Biden effectively dismissed Tuesday night a democratic plan proposed by Senators Elizabeth Warren and Chuck Schumer to write off up to $ 50,000 in student loan debt per borrower. Instead, he said he supported a measure to grant up to $ 10,000 in pardon.
“I won’t make it,” he said of the $ 50,000 relief measure. Instead, he told a CNN town hall audience that he believed the loan cancellation “depends on whether or not you attend a private college or a public university.”
—Michael Stratford (@mstratford) February 17, 2021
Biden said he was reluctant to write off the debt of people who attend elite institutions, citing Harvard University, Yale University and the University of Pennsylvania as examples. He also said that each of his three children graduated with six-figure debt and paid it off over time.
“I don’t think anyone should have to pay for this, but I think you should be able to get by,” he said. “I understand the impact of debt, and it can be weakened.”
Instead, the president put forward a proposal to provide a tuition-free community college for everyone and allow families earning less than $ 125,000 a year to send their children to state universities for free. .
“Everyone should be able to go to community college for free,” he said. “It costs $ 9 billion, and we should be paying for it.”
Many Democrats urge Biden seek aggressive action to reduce student debt. Schumer and Warren presented their plan earlier this month, touting it as a critical step to tackle inequality and strengthen the economy.
“There is very little the president could do with the stroke of a pen that would boost our economy more than forgiving $ 50,000 in student debt,” Schumer told reporters. “It’s one of those things the president can do on his own.”
Biden appeared to dispute the idea on Tuesday night.
“I’m ready to write off $ 10,000 in debt, but not 50,” he said. “I don’t think I have the power to do it.”
A $ 10,000 loan forgiveness measure is not part of Biden’s $ 1.9 trillion coronavirus relief package, which is making its way to Congress. Biden ordered the Department of Education to suspend all federal student loan payments until September 30 and waive interest.
White House press secretary Jen Psaki told a press conference on Feb. 4 that the Biden administration would favor congressional legislation to grant loan forgiveness instead of taking executive action.
—Jen Psaki (@PressSec) February 4, 2021
The Biden administration said it was examining the feasibility of this route.
“There is a legal consideration in this, as I think everyone is on board,” Psaki said on Wednesday. “There is a political consideration. And once that is over, he will decide the way forward.”