Gray's critical rant about the President results from statements that Biden made during a town hall on Tuesday night, in which he said that he was only willing to forgive $10k of debt for impacted students and ex-students. Canceling $10,000 of student loan debt would completely wipe out the debts of more than 15 million borrowers whose current balances are less than or equal to that amount, according to the most recently available federal data as of September 30.
"The current options for borrowers have proved to be inadequate and illusionary", they added. As many as one in five Federal student loan borrowers are in default.
Biden said he didn't want to cancel the debt of someone who went to Harvard or Yale because they make so much money after they get a degree and that he didn't think he even had the constitutional authority to cancel $50,000 in debt.
Pressed on the reversal, Psaki said, "He was reiterating his previous stated position, which is that he doesn't favor $50,000 in student loan relief without limitations", additionally noting that Biden "will ask them [the Department of Justice] to conduct a legal review of his authority to act on executive action in conjunction with a policy review from his Domestic Policy Council on how executive action debt relief, if any, should be targeted". Although Biden has moved further left on the issue, he still views himself as a moderate and is unlikely to pursue full student debt cancellation, White said. Elizabeth Warren (D-Mass.), that calls on Biden to use executive action to wipe out up to $50,000 in federal student loan debt for every borrower.
The Biden administration has said canceling more debt than that would take congressional action. "Canceling $50,000 in federal student loan debt will help close the racial wealth gap and benefit the 40% of borrowers who do not have a college degree and help stimulate the economy".
Amid broader considerations for reigniting the economy during the pandemic, the attorneys general suggested the proposed measure "would help remedy predatory practices that have disproportionately harmed people of color, boost our struggling economy, and create a viable future for millions of Americans". "By not forgiving student loans, Biden is only proving that he believes education is a luxury".
Ocasio-Cortez added, "The case against student loan forgiveness is looking shakier by the day".
People like me, who are still drowning in student debt.
Bishop's research focuses on the burden of debt on Black borrowers, who are often the ones hardest hit by student debt.
"We remain confident that this is something the president can do by executive action", she said, adding that the $10,000 level should be a starting point, not a ceiling.
Another 23 million borrowers owe balances that are between $10,000 and $60,000; and more than 7 million borrowers have federal debt of $60,000 or higher.
The opposing argument is that cancelling student debt is a type of federal spending, and only Congress has "the power of the purse".
While Biden presented his higher-education proposals as sensible and pragmatic alternatives to unilateral debt cancellation-which he falsely insisted he doesn't have the authority to carry out-racial justice activist Bree Newsome argued that "there's nothing practical about Biden's stance on student loan forgiveness". So too, they argue, does a separate 2003 law that provides the Education Department with more discretion over student loans during declared emergencies. That memo, written by a Trump political appointee, is not binding on the agency and could be reversed by the Biden administration. "I'm exhausted of talking about Donald Trump", he said.