WASHINGTON (NEXSTAR) — As millions of Americans deal with the burden of student loans, democrats are pushing to get some federal loans canceled.
“Take a huge burden off so many people in America,” Senate Majority Leader Chuck Schumer said
Thursday, Schumer and other Democrats called on President Joe Biden to act. “To cancel 50,000 dollars in student debt,” Schumer said.
Democrats say the president should use executive authority to cancel federal student loan debt without any tax liability.
“Other presidents have done it. There is legal authority,” Schumer said.
“Canceling student loan debt is the single most effective executive action that President Biden can take to help close the racial wealth gap,” Massachusetts Senator Elizabeth Warren said.
Warren says canceling student loan debt would increase homeownership, improve credit scores, produce jobs, and more.
“Whether you have student loan debt or not, because it is good for our economy,” Warren said.
While Democrats want up to $50,000 in forgiveness, the White House says right now the president is only comfortable with a smaller amount.
“The president has and continues to support canceling $10,000 of federal student loan debt per person as a response to the COVID crisis,” White House Press Secretary Jen Psaki said.
Republicans, like Iowa senator Joni Ernst, say loan forgiveness is unfair to other Americans.
“We’re going to forgive $50,000, but we’re going to put it on the back of everybody else, I don’t think that is the right avenue,” Ernst said.
Ernst says struggling borrowers should renegotiate interest rates or defer their loans until they are financially stable.