Attorneys General Press Congress On Student Debt Cancellation, Citing 'Defrauded Students'

Henrietta Brewer
February 20, 2021

Gray's critical rant about the President results from statements that Biden made during a town hall on Tuesday night, in which he said that he was only willing to forgive $10k of debt for impacted students and ex-students. Elizabeth Warren, are calling on Biden to cancel $50,000 per borrower.

The statement by Biden comes as another blow to loan cancellation efforts from liberal politicians including Democratic Senator Elizabeth Warren of MA and New York Democratic Congresswoman Alexandria Ocasio-Cortez. In December, Biden remarked it would be "unlikely" he would use executive power for debt forgiveness. Federal student loan borrowers won't have to make payments until October 1 at the earliest. And number two, I'm prepared to write off a $10,000 debt, but not 50.

"I will not make that happen", Biden responded to an audience member's question at a Town Hall yesterday in Milwaukee. Press secretary Jen Psaki said this week that Biden will sign off on canceling $10,000 for every borrower if Congress drafts and passes a bill over the issue. The Biden administration has said it is reviewing options for cancelling up to $50,000 in student debt by executive action, and we are confident they will agree with the standards Obama and Trump used as well as leading legal experts who have concluded that the administration has broad authority to immediately deliver much-needed relief to millions of Americans. Biden officials confirmed January 8 that the president supports canceling $10,000 in student debt per person as part of his COVID-19 relief plan. Elizabeth Warren of MA, said that would boost the economy and help close the nation's racial wealth.

Amid broader considerations for reigniting the economy during the pandemic, the attorneys general suggested the proposed measure "would help remedy predatory practices that have disproportionately harmed people of color, boost our struggling economy, and create a viable future for millions of Americans". It may also create a risky incentive for students who otherwise wouldn't have taken out loans to do so, with the hope the government would step in and forgive them, creating a downward spiral, Flores-Lagunes said.

Congressional resolutions jointly say Biden should "broadly cancel Federal student loan debt", particularly but not only because of the strain caused by the COVID-19 pandemic.

"Black women hold the most degrees of any women and also the most student loan debt". Many offer financial aid packages aimed at keeping students free from federal student loans. And on his first day in office, Biden extended an existing moratorium on student loan debt until September 30. Forty-eight percent of Black students owe an average of 12.5% more than they borrowed only four years after graduation.

The forthcoming legal review by DOJ announced by the White House comes amid a hotly contested debate over whether the Education Department itself has the power to cancel large swaths of its outstanding student debt portfolio.

Adam Green, co-founder of the Progressive Change Campaign Committee, said Biden's rejection of the $50,000 dollar figure and potential nixing of loan forgiveness via executive action "seemed unnecessary" and would hurt his standing with grassroots activists who are pressing for swift action. So too, they argue, does a separate 2003 law that provides the Education Department with more discretion over student loans during declared emergencies.

"I$3 t's extremely classist and racist to assume that only rich people can get into "elite" schools", said one user.

Other reports by iNewsToday