Canceling student loans is the progressives’ demand of the day, and last week U.S. Representative Ayanna Pressley, Senator Elizabeth Warren and Attorney General Maura Healey stepped up the pressure in their bid to get President Biden to eliminate these tax obligations.
In their design, eliminating up to $ 50,000 in federal student loan debt per borrower is a voter support repayment.
“We are all here to call on President Biden to do the right thing by the movement that elected him,” Pressley said.
“So you can say the words of appreciation. Politics is my language of love – cancel student debt. “
In Warren’s opinion, “Our economy would fare better if everyone with student loans could go out and start their own small businesses, able to buy a home.”
The cost would be enormous – even considering the recent spells of stimulus spending. According to data from the Department of Education, canceling student debt of up to $ 50,000 per borrower would cost around $ 1 trillion. Limiting the loan cancellation to $ 10,000 would cost about $ 373 billion.
For a bit of perspective, the Brookings Institution reports that the cancellation of up to $ 50,000 in student debt is similar in cost to the cumulative amount spent on Supplementary Security Income (SSI) and all student assistance programs. housing since 2000.
White House chief of staff Ronald Klain told Politico that Biden “hasn’t made a two-way decision” on the $ 10,000 or $ 50,000 pardon figure.
The is a student loan problem that needs to be fixed, but it’s not the one making the headlines.
Under the Public Service Loan Forgiveness Program, those who work for government organizations (federal, state, local, or American tribal), as well as tax-exempt nonprofits, get the cancellation of the loan. balance of their student loans after 120 qualifying monthly payments.
Serving as a full-time AmeriCorps or Peace Corps volunteer also qualifies for the loan forgiveness program.
It gives those who took loans and continued working for the public after college a break – a kind of private equity if you will.
But the program has been plagued by problems, according to Politico. Over 98% of applicants requesting loan cancellation were rejected by the program.
Last week, unions representing teachers, firefighters, healthcare workers and government workers called on Education Secretary Miguel Cardona to completely write off the debt of borrowers who worked for more than a decade in public service.
“The COVID-19 pandemic underscores the need for immediate action,” the unions wrote to Cardona in a letter, which was shared with Politico. “Public service workers who should have already benefited from the Ministry of Education’s public service loan forgiveness program are on the front lines of our pandemic response: they care for patients, teach our students and provide essential services in communities across the country.
Taking steps to address this issue so that those essential workers who kept the country running during the pandemic can achieve the debt cancellation that the public service loan forgiveness program was designed to provide is of more immediate concern. and viable.
The Public Service Loan Forgiveness Program is not a free program for everyone, but helps those who work to help others no matter who they voted for.