Schumer and Warren announce resolution to write off up to $ 50,000 in student loan debt – KIRO 7 News Seattle
Senatorial Minority Leader Charles Schumer and Senator Elizabeth Warren have announced a resolution Thursday that could cancel federal student loan debt of up to $ 50,000 per student.
In one Press release, Schumer, DN.Y. and Warren, D-Mass., urged President Donald Trump to take executive action to write off debt due to the coronavirus pandemic.
“For too long, the sunny, American optimism of our young people has been clouded by crippling student debt,” said Schumer. “Education is supposed to be a ladder, but studies have shown that student loans hold people back and prevent young college graduates from owning homes or starting small businesses. It is putting the brakes on our entire economy, which we cannot afford after the financial devastation of COVID. This is why I will prioritize the cancellation of student debt in 2021.
The plan proposed by Schumer and Warren would ensure that there is no tax liability for borrowers resulting from administrative debt collection, WGRZ reported.
“General student loan debt cancellation will improve the lives of tens of millions of Americans, boost our economy during this pandemic and beyond, and even help close the racial wealth gap,” Warren told reporters on a conference call. “Our resolution sets out a bold plan for the President to use the existing authority under the law to write off up to $ 50,000 in student loan debt for all borrowers on federal loans.”
According to the US Department of Education, approximately 43 million adults currently have a federal student loan, CNBC reported. The department has Free some relief by suspending payments on federal student loans until the end of the year, the network reported.
“The current health and economic crisis caused by the COVID-19 pandemic has only exacerbated the urgency to respond to a student loan crisis that continues to disproportionately affect black borrowers and other borrowers of color,” women, veterans and low-income families. Ashley Harrington, director of advocacy and senior counsel for the Center for Responsible Lending, said in a statement. “We applaud Senators Warren and Schumer for crafting a plan that would provide crucial student debt relief to at least 44 million borrowers who owe more than $ 1.5 trillion in student loans.
Schumer said the plan would offer full student loan forgiveness to more than 75% of borrowers nationwide and at least 95% debt forgiveness of people with student loan debt, according to one. Press release.
According to The hill, the resolution targets Democratic presidential candidate Joe Biden, noting that President Donald Trump and Senate Majority Leader Mitch McConnell, R-Ky., have opposed previous attempts to cancel federal student debt.
“We know President Trump and Secretary (of Education) (Betsy) DeVos are totally against this stuff. We understand this. But the next president could easily do it, ”said Schumer. “We want to start drawing people’s attention to this issue as a major issue that could be addressed early next year.”
Joining the resolution are Senators Sherrod Brown, D-Ohio; Richard J. Durbin, D-Ill .; Bernie Sanders, I-Vt .; Tammy Duckworth, D-Ill .; Richard Blumenthal, D-Conn., Chris Van Hollen, D-Md .; Jeff Merkley, D-Ore .; Edward J. Markey, D-Mass .; Cory Booker, DN.J. ; Robert Menendez, DN.J. ; and Ron Wyden, D-Ore.
Cox Media Group