September 25, 2022
11 11 11 AM
Breaking News :
FireNews : Vincent Van Quickenborne: Four arrested in Belgian minister ‘kidnap plot’ #FireNews365 FireNews : Ukraine war: Protests in Russian Dagestan region against new draft #FireNews365 FireNews : Cattle rustlers kill at least 11 people during ambush in Kenya #FireNews365 FireNews : Roger Waters gigs in Poland cancelled amid Ukraine backlash #FireNews365 FireNews : Kipchoge breaks own marathon world record in Berlin #FireNews365 FireNews : Ukraine war: Ukraine will treat Russian deserters civilly, Zelensky vows #FireNews365 FireNews : Typhoon Noru: Evacuations in Philippines as severe storm nears #FireNews365 FireNews : Nigeria’s Biyi Bandele: A storyteller to his bones #FireNews365 FireNews : Afrobeats: Chart show host celebrates ‘beautiful year’ for genre #FireNews365 FireNews : Qatar World Cup: Accommodation worries for football fans #FireNews365

FireNews : President’s student loan forgiveness plan draws pushback from some lawmakers and consumer groups #FireNews365

Student loan borrowers gather near The White House to tell President Biden to cancel student debt on May 12, 2020.

Paul Morigi | Getty Images Entertainment | Getty Images

President Biden’s long-awaited plan to forgive student debt, announced on Wednesday, drew immediate pushback from some lawmakers and consumer groups even as they praised the historic measure.

The White House said it would cancel $10,000 in federal student debt for most borrowers and up to $20,000 for recipients of Pell Grants, which are available to undergraduates based on financial need. The plan may eliminate balances for at least 9 million borrowers, according to higher education expert Mark Kantrowitz.

Biden ‘should have, and could have, done much more’

Astra Taylor, co-founder of the Debt Collective, a union for debtors, called Wednesday’s announcement “bittersweet.”

“On the one hand, this is a landmark victory for our movement,” she said in a statement. “Yet, President Biden should have, and could have, done much more than cancel $10,000 or 20,000 — and he could have made the relief automatic, instead of imposing unnecessary hurdles,” she added.

Biden cancels $10,000 in federal student loan debt for most borrowers

Nearly 8 million borrowers may be eligible for automatic relief; however, some borrowers may need to apply if the U.S. Department of Education doesn’t have relevant income data, according to the federal student aid website. That application isn’t yet available.

“We intend to keep fighting until all student debt is canceled and college is free,” Taylor said. “If President Biden can cancel this much debt he can cancel it all.”

Biden paired the debt cancellation and payment pause with a measure to cap undergraduate loan repayments at 5% of monthly income.

Warren, Schumer pledge to ‘pursue every available path’

“Make no mistake, the work — our work — will continue as we pursue every available path to address the student debt crisis, help close the racial wealth gap for borrowers, and keep our economy growing,” Schumer and Warren said.

Canceling $10,000 ‘hardly achieves anything’

“Canceling just $10,000 of debt is like pouring a bucket of ice water on a forest fire,” Johnson wrote in an op-ed. “It hardly achieves anything — only making a mere dent in the problem.”

Data suggest that doubling the maximum forgiveness amount — to $20,000 — for Pell Grant recipients would be most benefit Black students. To that point, 72% of Black students received a federal Pell Grant during the 2015-16 school year, about double the share of Asian and white students that year, according to most recent data from the National Center for Education Statistics.

Carlos Moreno, a senior campaign strategist at the American Civil Liberties Union, applauded the policy’s impact on Black borrowers.

“Student debt cancellation will help secure financial stability and mobility for people of color — particularly Black Americans — who are disproportionately burdened with student debt while providing immediate financial relief and peace of mind for millions of Americans,” Moreno said.

We intend to keep fighting until all student debt is canceled and college is free.

Astra Taylor

cofounder of the Debt Collective

Forgiveness could ‘make inflation even worse’

While some voiced concern that the Biden administration didn’t go far enough, others said the White House measures went too far and threaten to exacerbate stubbornly high inflation.

“Washington Democrats have found yet another way to make inflation even worse … and achieve nothing for millions of working American families who can barely tread water,” said Senate Minority Leader Mitch McConnell, R-Ky.

But Adam Green co-founder of the Progressive Change Campaign Committee, framed the measure as “a bigger investment [in dollar terms] than the G.I. Bill — in young people and millions of others.”

“Today, the cancellation of up to $20,000 of student debt for as many as 43 million Americans will have a historic impact on Americans who have faced a uniquely generational burden,” Green said.


Source link