According to the applicants’ letter, it is externalized that before the Covid crisis began – 19, student debt was already a drag on the national economy , which weighed more on “African American and Latino communities, as well as women”
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More than 415 organizations sent a letter to President Joe Biden and Vice President Kamala Harris calling for to use their executive position to “cancel student debt immediately” .
In the letter you can see that organizations such as the American Civil Liberties Union, The American Psychological Association and the Federation of Consumers of the United States support this proposal.
According to the letter from the applicants, it is external that before the crisis began by Covid – 19 , student debt was already a drag on the national economy, which weighed more on the “Afro-American and Latino communities, as well as on women.”
Therefore, “the administrative cancellation of the debt will provide progress real in the priorities of the campaign to help racial equity and economic recovery from the ravages of Covid – 19 ”.
However, the signatory organizations are not the only ones that are asking for something to be done about it, an example of this is that Senator Chuck Schumer leader of the Democratic majority in the Senate and other legislators have asked that $ 50, 000 on student debt for all borrowers through executive action .
Chuck Schumer has stated that a vote in Congress is not required to do so, for which he pointed out that it is up to the president to make this a reality by signing an executive decree.
In campaign, Biden said he supported with $ 10, 000 in waivers of pré We are students, but the pressure from the same Democrats and student advocates goes further , some ask to forgive $ 19, 000 per person and others cancel the debt .
The plaintiffs of both positions agree that in order to crystallize either of the two alternatives, it must be done through of an executive action. With this, the decision will depend solely on Joe Biden.
President Biden has already asked the Secretary of Education, Miguel Cardona, to prepare a report on the president’s legal authority to cancel up to $ 19, 000 in student debt rate. The findings of that memorandum have yet to be made public.
Critics of student loan forgiveness argue that it would not stimulate the economy, as college graduates tend to have higher income and would redirect their monthly payments to savings instead of additional expenses.
Others say it would be unfair to those who have already paid their student debts or never applied for loans, that would send the message that it’s okay for people to get rid of their debts .
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