With Americans now owed more than $ 1.7 trillion in student loans, lawmakers are finding it harder than ever to cancel at least part of that debt.
Congress leaders have come up with a number of proposals to reduce or reduce fashion debt, which is estimated at 45 million Americans. The measures make it easier to repay loans with student loans of up to $ 50,000, cancellation of debts of up to $ 10,000, reduce interest rates on improvements and make loans easier to repay.
If there are so many options on the table, where will Congress members stand on student loan forgiveness? Email Congress members from each state to ask for ideas on CNBC Make It supported student loan forgiveness.
Of the more than 500 members of Congress IT, 66 responded.
Here’s how to break it down –
- 10 Members of Congress, all Republicans, do not support the student loan waiver (flat) standard.
- 9 members did not support the apology.
- 1 Democrats support student debt forgiveness, but not a “random rate” plan.
- 37 Congressional Democrats – both in the House and in the Senate – support measures to waive up to $ 50,000 in student loans.
- Six Democrats who responded said they supported a $ 10,000 student loan waiver.
- 27 Congressmen report student loans.
- 5 members are still paying their debts.
Although many members of Congress have not responded to CNBC Make It questions, some lawmakers have already made public their views. Senator Bernie Sanders, IVT, and his representatives, Alexandria Occio-Cortez, DNI and Maxine Water, D-Khalifa, for example, joined President Biden’s decision to cancel a student loan of up to $ 50,000. . Farmer Senator John Town does not believe blankets are the answer to student loans.
‘Student Debt Reduces Millions’
According to the US Department of Education, shared by Elizabeth Warren, D-Massie, about 36 million borrowers will have to pay off student loans if the US government cancels $ 50,000. Debts of up to $ 10,000 have been wiped out.
I earned my degree from a public transportation college for $ 50 a semester. This part-time host paid me a high-quality, public education — and it opened a million doors for me. He must be a cleaner teacher, law school professor and US senator, ”Warren told CNBC Make It.
But it is impossible for college students to have such an opportunity today. Student loan debt is declining, especially during this epidemic. It is the anchor that is pulling our struggling economy. That’s why President Biden is instructing Warren to immediately cancel federal student loan debt of up to $ 50,000.
But not everyone will benefit. Private student loans are not included in any student loan waiver proposals so far. In any case, many believe that student loan forgiveness will help close the gap between rich and poor millions of Americans.
“Board student student debt cancellation is a matter of racial and economic justice, and President Biden’s bold, high-impact policy is right,” said Ayana Presley, De-Mass. Do it on CNBC.
Black college graduates owe an average of $ 52,726 compared to their white counterparts at $ 28,006 on average at the Brookings Institution in 2016.
“The abolition of federal student debt is one of the most effective ways to stimulate our economy and reduce the racial gap,” says Presley.
Support for canceling $ 50,000 in student loans is not universal
For some, though, canceling $ 50,000 in student loans is not the right solution. For example, President Joe Biden has repeatedly violated proposals to use executive orders to forgive $ 50,000 in student loans. He is supporting a $ 10,000 debt forgiveness and saying Congress needs to address it.
Representative Steve Stevens, R-Ohio, told CNBC Make It that he did not support student loan debt forgiveness for some reason. “Our national debt is over $ 28 trillion and is growing. That’s more than $ 85,000 per citizen, which is $ 32,731 more than a student loan. ”
Stevens also fears that an empty cover could lead to unintended consequences. »[Students] If they think that the government will be able to clear it later, or if they do not take the time to understand the decision, they may be willing to accept unbearable debts.
Representative Scott Peters, De-Calif, supports student debt forgiveness, but believes it should be linked to income, not “a random amount,” he told CNBC Make It.
“I support reducing interest rates on student loans, repaying them, and allowing them to go bankrupt,” he said, adding that he also supports the promotion of student loans offered by the employer.
What happens next?
Although Warren et al. If Biden chooses that path, forgiveness can happen relatively quickly.
Otherwise, Democrats could use the $ 1.9 trillion bailout plan as a way to push through student congressional debt relief through Congress. And now, a few voices are ashamed of his full support.
Meanwhile, federal creditors are still on vacation. The school will continue to discontinue loan payments, at least until the end of September, freeze debts and apply a 0% interest rate on all federal student loans.
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