Democratic Sen. Elizabeth Warren on Sunday renewed her pressure for President Biden to cancel billions of dollars inand said the measure would wipe out the burden on tens of millions of borrowers while increasing Democrats’ chances of holding on to their Senate and House majorities in the midterm elections in November.
When he appeared on “Face the Nation”, Warren insisted that the White House have the authority to cancel student loans, in part because it has already done so for certain borrowers, including through afor people working in the public service.
“Look, we know the president has the authority to cancel the student loan debt, and the best way we know is because President Obama did it, President Trump did it, and President Biden has now done it repeatedly. Power is there completely. clearly, “she said.
Warren said 40% of borrowers do not have university diplomas and can get stuck with huge debts even though they have not completed their degrees.
“These are people who tried, but life happened: pregnancy, they worked three jobs, their mother got sick, they had to move to another city. And now they serve as a high school student, but they try to make college loans. debt and it crushes them, “she said.
Searching for student debt has been one of Warren’s main goals in recent years. She has repeatedly pressured the Biden administration to extend the disbursement of student loans during the pandemic andthis month shows that the cancellation of $ 50,000 in student loans per. person would erase all debt for 36 million borrowers, or 84% of them with loans. Last week, she discussed her proposal in an op-ed for The New York Times, in which she outlined how her party could avoid a catastrophe in the upcoming midterm elections.
“Democrats win when Democrats are in touch with the American people and what happens to them,” she said Sunday. “Today we have people standing in the box for groceries and having to choose what to send back because they can not afford to pay for it. We have millions of people across this country who say they do not are ready to resume their student loan payments, that they simply can not cope with these loan burdens. “
Mr. Biden has previously said he wanted to cancel $ 10,000 in student loan debt, though he has seemed reluctant to move on without congressional action.
Opponents of Warren’s plan to cancel student debt say it would contribute to already record high inflation. The senator disagrees.
“As President Biden himself says, the way we deal with inflation is not by making people poorer,” she said. “The way we handle inflation is that we attack high prices directly, [such as] price cutting. We straighten the supply chain so that goods can reach people. We attack it directly, not by trying to make people poorer. Canceling student loan debt is something that would be good for people all over this country and more importantly, good for our economy in general. “
Borrowers owe more than $ 1.7 trillion in student loans, according to the Federal Reserve. It is the second largest debt for US households, after mortgages. The burden has forced many young Americans tosuch as buying a house, saving up for retirement and having children, a survey revealed last week.
Warren expressed confidence that Democrats can deliver results over the next six months before voters go to the polls.
“We have to be out there and fight, and what we have to fight for are the things that directly affect the families of the United States,” she said. “People are counting on us, and we can not just sit back and play politics. We must join the fight on behalf of the American people. And that means people struggling with student loan debt, people struggling with high prices, people who are concerned about this pandemic. “