Lobbying for Biden to write off student loan debt could close the racial wealth gap
The student debt crisis has become a major problem for millions of Americans who are on the brink of their siege as they wait for some federal relief. Proposals in Washington for student loan debt cancellation are still on the table and under discussion.
Currently, no bill has been presented to the president Joe biden. Yet Democrats are feverishly working on this issue.
In a February 4 tweet, the White House press secretary Jen psaki said, “The President continues to support student debt cancellation to provide relief to students and families. Our team is examining if there are any steps he can take through executive action and he would be happy to have the opportunity to sign a bill sent to him by Congress. “
On his first day in the Oval Office after his swearing-in ceremony, President Biden signed an executive order to extend the freeze on payments and interest on federal student loans. The bigger picture includes affordability, the expansion of income-tested repayment programs and loan cancellation programs for people in public service jobs.
Biden also supported plans to cancel federal student loans tied to tuition for lower and middle class Americans who attended public institutions, HBCUs and other institutions serving minorities.
However, the immediate goal is student loan debt relief. On the Hill, there is no bill on the cancellation of the student debt of $ 50,000 proposed by the Senses. Chuck schumer and Elizabeth warren and an in-house version run by the representatives. Ayanna pressley, Ilhan omar and Mondaire Jones.
Still, discussions about canceling student loan debt are ongoing and support is increasing.
Meanwhile, the White House has reported that if the legislation hits the president’s office with a student loan cancellation monetary number greater than $ 10,000, President Biden will review it. There is a difference of $ 40,000 between the two parties on the matter.
The White House has previously said that if President Biden gets a bill canceling $ 10,000 in student loan debt per borrower, he will sign it as law. The White House views all student loan debt relief as urgent economic relief.
Student loan debt relief work between Hill lawmakers and White House officials is underway. High-level conversations about student loan debt cancellation are reminiscent of what happened years ago between the president Lyndon B. Johnson and Dr Martin Luther King Jr., as President Biden suggested to Sen. Chuck Schumer and others to get support for their plan and force it to do so (signing the $ 50,000 debt relief into law).
In the mid-1960s, President Johnson told Dr King to “get it done” when it came to gaining support for the voting rights law. King finally got this bill passed.
Schumer’s Student Loan Debt Relief Plan Has Backing from House Majority Whip Congressman James clyburn.
Schumer gave leGrio internal details of her meeting with Biden. The New York senator said Biden, “told us he said he is seriously thinking about it. We said we were going to mount a campaign. He said ‘Go ahead.’ So I urge your listeners, if they believe it, to email, write, call the White House and just say, please get rid of fifty thousand dollars in debt.
Senator Schumer pointed out that canceling student debt would also help closing the racial wealth gap. “This is a huge civil rights issue as well as an issue of fairness for our young people,” Schumer said, “and that applies to parents. If they also took over the debt with the flick of a pen Joe Biden could say that $ 50,000 in debt is forgiven and that would wipe out debt from 73% of all people and a higher percentage of African Americans.
There are more marked racial differences in the financial pain of student debt. “By 20 years of college, only 6% of whites have student debt [compared to] 95% percent of blacks. Let’s get rid of this, ”Schumer added.
From average citizens to prominent figures, many have struggled with student loan debt from the former president Barack obama and Michelle obama at Stacey Abrams and Jaime Harrison. It’s a more than familiar scenario to many.
However, the question is, will Schumer get his claim? Harrison, who is the new leader of the Democratic National Committee, said leGrio that he doubts the cancellation of student debt will reach $ 50,000.
“At the end of the day… the legislative sausage grinder will do its will and we will come up with some type of bill that we can bring to the president’s office, hopefully, and then relieve the people,” Harrison said. leGrio.
He added, “For the first time in America, you have young people starting their lives with hundreds of thousands of dollars in debt tied around their legs to begin with. And it forces them to make decisions that other generations did not have to make.
“They get married later, if at all. They stay home later with their parents because they cannot afford to fend for themselves due to the burden of student debt. People buy houses later and rent more. And so we have to really understand as a nation, how to curb this, because this phenomenon is not happening in other countries. “
Dr. Glenda glover, president of Tennessee State University, has thoughts similar to Harrison’s saying leGrio she “is happy that they are considering loan debt cancellations.”
“This is a game changer for the students at HBCU who will be in so much debt,” Glover said.
President Glover goes on to say that with debt cancellation, HBCU graduates will be “in a better position to make the wisest career decisions.”
Morgan State University President Dr. David Wilson said $ 30,000 would be a great place to land. The average debt for undergraduate student loans is around $ 32,000.
“Anything that is important in reducing the debt burden on our graduates would be of huge benefit to our economy,” Wilson said.
Congresswoman Ayanna Pressley is working with Senator Schumer on this issue. Pressley said, “We got a warrant from the people to [Biden] honor the promises he made during the election campaign. Yes, we are calling for the cancellation of $ 50,000 in debt, which is essential to adjust for a fair economic recovery from this pandemic. “
Pressley added: “It is a matter of racial justice”.
“Black student borrowers. Eighty-five percent of them take out loans because they have no other choice – I was exactly like that, ”she added. “And then we’re more prone to default; five times more likely – which I did – than our white counterparts. And it ruins your credit score and completely determines the course of your life.
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