US Senate Majority Leader Chuck Schumer (D-NY) looks down the aisle after speaking to reporters after Senate Democrats’ weekly policy luncheon on the US Capitol. In Washington, on July 20, 2021.
Elizabeth Frantz | Reuters
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Key Democrats on Tuesday urged President Joe Biden to extend the suspension of federal student loans, arguing that failure to pursue the policy would burden borrowers and hamper economic recovery.
The Biden administration has stopped payments, interest accrual and collections on loans held by the Department of Education until September 30. The policy took effect last year when the coronavirus pandemic devastated the United States economy.
Senate Majority Leader Chuck Schumer, DN.Y., Sen. Elizabeth Warren, D-Mass., And Rep. Ayanna Pressley, D-Mass., Lobbied Tuesday for Biden to extend the moratorium at least until March. They also renewed their calls for the president to forgive up to $ 50,000 per borrower in federal student debt through executive action.
“We urge President Biden to act urgently,” Pressley told reporters. “Failure to act would be inconceivable, it would undermine our economic recovery.”
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A White House spokesman did not immediately respond when asked if Biden planned to extend the pause in payments or write off any federal student debt.
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Americans have approximately $ 1.7 trillion in student debt. During the pandemic, the suspension of payments from the part of the government helped millions of people pay their costs of living after an economic downturn.
The economy recovered this year as Covid-19 vaccines increased and state and local governments lifted restrictions. The unemployment rate was 5.9% in June, below the peak of 14.8% in April 2020.
Pressley partly cited an increase in US Covid infections fueled by the delta variant as justification for maintaining the suspension of payments. Warren also pointed to a Pew Charitable Trust survey that found that more than two-thirds of federal student loan borrowers are not ready to restart their payments.
“The choice of what to pay will fall the most on the most vulnerable among us,” Warren said.
Proponents of federal loan forgiveness say the payments have prevented Americans from starting businesses and making major purchases, and have placed a disproportionate burden on borrowers of color.
Schumer, Warren, and Pressley have argued that the president has the authority to forgive the federal debt himself.
“All President Biden has to do is wave his pen and sign it,” said the Senate Majority Leader.
Biden has asked Congress to forgive up to $ 10,000 in student loans per borrower. He has said he is concerned that forgiving up to $ 50,000 per person with debt could benefit higher earners who received advanced degrees.
The White House previously said that members of the Biden administration would prepare memoranda outlining the president’s authority to forgive debt before he makes a decision. However, it is unclear whether he has received or reviewed the memos.
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