KANSAS CITY, Mo. — Erase student loan debt. That is the proposal a group of Democrats will introduce today, urging President Joe Biden to take action.
Top Democrats – including Elizabeth Warren, Mass., and Chuck Schumer, N.Y. – want President Joe Biden to forgive $50,000 dollars in federal student loans per person – with no strings attached.
The average cost at a public university like the University of Missouri – Kansas City is $25,000 a year. It’s $50,000 for a private school.
Many students seeking higher education have to take out loans for school – otherwise, they can’t afford it. That burden many times prevents them from buying a house after graduation and causes financial struggle for years and years.
Congressional Democrats plan to introduce a resolution today to forgive $50,000 in federal student loans. They have said it will free up money for those struggling financially during this pandemic.
President Biden has already suspended federal student loan payments through September. He could use an executive order to forgive $50,000 in federal student loan debt. However, Biden has mentioned he prefers a smaller amount, like $10,000 per borrower.
Republicans are against this. They say it’s too expensive, it would not be fair to those who have already paid off their student loans, it would encourage colleges to boost tuition, and it would set a bad precedent for future generations to over borrow, thinking the government would forgive it later.
Others argue it would take money away from anti-poverty programs to benefit those who are college educated and have good-paying jobs.
But those who support this argue forgiving this student loan debt would boost the economy by freeing up money for consumers to spend on other things, such as buying a home.
More than 300 different organizations are urging the President to use an executive order to forgive the 50 grand. The President also said during the campaign that forgiving some student loans is at the top of his agenda.
FOX4 will follow this story closely. We will report any decision he makes in the coming days.