President-elect Joe Biden is seeking to immediately relieve some pressure on Americans by asking Congress to write off $ 10,000 in student loan debt for all borrowers.
A Biden aide briefed the media on the president-elect’s plans on Friday afternoon. The official also revealed that Biden will urge Congress to extend the payment break which is due to expire this month. The $ 900 billion pandemic aid plan adopted in December did not mention the extension of the payment break for student loan borrowers that has been in effect since March 2020.
Biden and other financial advisers appear to believe the strain caused by the pandemic has left many Americans unable to make these payments. A recent Pew poll found that nearly 60% of Americans said it would be difficult for them to resume paying their loans this month. In addition, nearly 90% of borrowers took advantage of the government’s option to suspend payments during the pandemic.
It’s unclear how long Biden will extend this break. Yet the president-elect’s plan to write off $ 10,000 in student loan debt is true to his campaign promise. Yet he faces pressure from citizens and other politicians to write off more of their debt in order to bypass Congress to do so.
“All you need is a swipe of the pen,” Democratic New York Senator Chuck Schumer, who is in favor of forgiving Biden’s $ 50,000 debt, said in December. “You don’t need Congress. Additionally, Senator Elizabeth Warren urged Biden to use executive action to grant debt relief.
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