Sen. Elizabeth Warren (D-MA) and Senate Majority Leader Chuck Schumer (D-NY) brought everyone’s attention to a resolution in Congress that seeks to have up to $50,000 of student loan cancelled. They’re calling on the newly elected President, Joe Biden, to use executive powers to cancel student loan, considering the impact of Covid-19.
Forbes points out that, “the resolution is similar to a resolution that Schumer and Warren introduced in September. Since then, Schumer has clarified that their proposal doesn’t apply to every student loan borrower. Rather, only student loan borrowers with federal student loans who earn less than $125,000 would be eligible.”
Warren and Schumer have insisted that student loans cancellation would have a positive impact on the economy. They’ve emphasized that successful student loan cancellation would reduce disparity, encourage small businesses, increase family formation, spur home buying, encourage retirement savings and generally improve the economy. The pair are advocating for an executive order from the president, while insisting that there is no need to wait for approval from Congress.
“Canceling student loan debt would immediately put money in the pockets of millions of Americans. It would help dig our economy out of this crisis. And we don’t have to wait for Congress: the Biden-Harris administration can get it done with their executive authority,” Warren posted on social media.
What remains a concern is why Warren and Schumer are not seeking a universal student loan cancellation plan, with both Congress and the White House in support. The stand they’re taking is not in unity with the president, despite being in the same party. Nonetheless, Republicans are not going to be in support of student loan cancellation.
The discord among Democrats may impact student loan cancellation very negatively. Student loan borrowers should be worried about this disagreement. However, some recent tweets from concerned and responsible parties show that the topic is far from closed.