President-elect Joe Biden said Congress must take “immediate” action to simplify student loan obligations.
Biden’s appeal comes after Senate Minority Leader Chuck Schumer (D-NY) said Biden must take executive action to waive his student duties once he takes office.
A Biden spokesman told Fox News that the president-elect was calling for “immediate” action to forgive $ 10,000 in student debt to borrowers, but that the action should take place in Congress.
“An immediate $ 10,000 forgiveness for student loans to help people there in real trouble,” Biden said Monday. “They have to choose between paying their student loan and paying the rent. Such decisions. “
Biden added: “It must be done immediately.”
The official later said Biden had in mind the actions of Congress.
Sumer and Senator Elizabeth Warren (Massachusetts) have developed a plan under which Biden can use his executive power to cancel up to $ 50,000 of student debt to a borrower.
“I have a proposal with Elizabeth Warren to destroy the first $ 50,000 debt, and we believe that Joe Biden can do that with the pen, unlike the law,” Schumer said in an interview with The Ink.
Biden called for a more modest pardon – a $ 10,000 student loan – as part of a broader coronavirus relief package.
Sumer said Biden had the power under the Higher Education Act to order the Department of Education to reduce or waive student loan debt without congressional approval.
He said he would provide full forgiveness to more than 75% of borrowers and partial forgiveness to more than 95%.
But if taxpayers bear the cost of a huge student debt, they could face political resistance and lawsuits.
Unpaid student loan debt has doubled in the past decade to $ 1.7 trillion, with one in six Americans owing money, Fox News reported. This is the second largest amount of debt owed by Americans after mortgages.
In March, President Trump suspended payments on federal student loans and set interest rates at zero percent until December 31, 2020.