Biggest winners in Democrats’ plan to write off $ 50,000 in student debt
Top Senate Democrat Chuck Schumer of New York, along with Senator Elizabeth Warren, D-Mass., And other Democratic lawmakers on Thursday reintroduced a resolution calling on the White House again to forgive $ 50,000 in student debt. all borrowers by the executive. action.
“In a time of historic and overlapping crises, which disproportionately impact communities of color, we must do everything in our power to bring real relief to the American people, lift our struggling economy and close the gap. of racial wealth, ”Schumer said in a statement.
“Democrats are determined to take bold and bold action, and this resolution to write off up to $ 50,000 in federal student loan debt is one of the most important steps the President can take to achieve those goals.” .
The resolution, first made in the Senate last year, was also presented to the House of Representatives by Rep. Ayanna Pressley, D-Mass. Rep. Ilhan Omar, D-Minn .; be p. Mondaire Jones, DN.Y.
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Although Biden expressed reluctance to cancel student debt through executive action, and has not included any debt relief in his plan for another $ 1.9 trillion Covid stimulus package, he is under mounting pressure members of his own party to act.
Tens of millions of borrowers are also looking for the new president to alleviate some of the burden of their debt. On the way to the countryside, Biden has vowed to cancel some of his loans. About 3 in 4 Americans support forgiveness of $ 10,000 in student loans, according to to the latest College Investor survey.
“We have taken to heart his promise to make it a fundamental priority,” said Nate wlodarchak, 37, a Denver-area scientist who studies tuberculosis and owes about $ 12,000.
Here’s who would benefit the most from a $ 50,000 student loan forgiveness.
Canceling $ 50,000 for all borrowers would bring the country’s student debt balance to $ 700 billion from $ 1.7 trillion.
The plan would write off all the debt of 80% of federal borrowers, or 36 million people, according to higher education expert Mark Kantrowitz.
To be sure there is a growing number of student loan borrowers who owe more than $ 100,000 and would still end up with large balances even after the $ 50,000 forgiveness.
The plan would not help borrowers either private student loans.
And in a recent Pew survey, 6 out of 10 borrowers said it would be difficult for them to start paying their student loan bills again.
“Debt cancellation would have a huge impact on those most affected by the coronavirus pandemic: Black Americans, older borrowers and recent graduates,” said Alexis Goldstein, senior policy analyst at Americans for Financial Reform .
Women borrowers would benefit greatly from the proposal.
It’s because women have to around two-thirds of the country’s outstanding student debt, according to the American Association of University Women.
White female student loan borrowers owe an average of $ 31,300, compared to $ 29,900 for white males. Meanwhile, black female borrowers owe an average of $ 37,600, compared to $ 35,700 for black male borrowers.
Black Americans and Latin Americans would also be among the biggest winners of the proposal.
Nearly 85% of black graduates have student debt, compared to 69% of white graduates, according to the Center for Responsible Lending.
And about 38% of black students who entered college in 2004 had defaulted on their student loans within 12 years – a rate three times higher than their white counterparts.
An aide to Warren said canceling student debt would make the biggest strides towards closing the racial wealth gap since the civil rights movement.