Senate Democrats’ push for President Biden to forgive $50,000 in student loans would make 36 million debt-free

President Joe Biden recently made an executive order for the Department of Education to continue the pause on student loan payments for another eight months.

The pause on student loan payments begun under the Trump administration soon after the coronavirus pandemic started and now the suspension will continue until at least Sept. 30, 2021. Though, some progressive Democrats feel pausing student loans is not enough.

President Biden plans to eventually forgive $10,000 in student loan debt per person, but democrats Senate Majority Leader Chuck Schumer, D-N.Y., Elizabeth Warren, D-Mass and more are calling on the president to take executive action and forgive $50,000 per person. This will eliminate debt for 36 million borrowers, according to CNBC.

In a statement, Schumer said: “During a time of historic and overlapping crises, which are disproportionately impacting communities of color, we must do everything in our power to deliver real relief to the American people, lift up our struggling economy and close the racial wealth gap.”

“Democrats are committed to big, bold action, and this resolution to cancel up to $50,000 in federal student loan debt is one of the strongest steps the president can take to achieve these goals,” Schumer continued.

Though President Biden has promised to eliminate $10,000 in student loan debt per borrower, he’s been reportedly hesitate on calling executive action on student loan forgiveness. Biden’s current plan for $1.9 trillion COVID-19 economic relief package does not include student loan forgiveness.

“I do think in this moment of economic pain and strain that we should be eliminating interest on the debts that are accumulated, number one. And No. 2, I’m prepared to write off the $10,000 debt, but not [$50,000],” Biden said, according to The Hill.

Nevertheless, democrats are pressuring the president to deliver executive action on student loan forgiveness. Warren said in a statement, “The COVID-19 crisis is worsening the massive inequities in our economy and society, but even before the pandemic the student loan debt crisis was already crushing millions of Americans.“

According to a new survey reported by NBC News, 67% of Black voters support the elimination of student loan debt. Black borrowers remain heavily impacted by weight of student loan debt with higher borrowing rates, according to CNBC.

“By cancelling up to $50,000 in federal student loan debt for borrowers, President Biden can take the single most effective executive action available to provide a massive stimulus to our economy, help narrow the racial wealth gap, and lift this impossible burden off of tens of millions of families,” Warren added.

According to a press release via Warren’s site, progressive democrats laid out their plan:

• Recognizes the Secretary of Education’s broad administrative authority to cancel up to $50,000 in Federal student debt, using the modification and compromise authority Congress has already granted the Secretary in law;

• Calls on President Biden to take executive action to administratively cancel up to $50,000 in Federal student loan debt for Federal student loan borrowers using existing legal authorities under section 432(a) of the Higher Education act of 1965 and any authorities available under the law;

• Encourages President Biden to use the executive’s authority under the Internal Revenue Code of 1986 to prevent administrative debt cancellation from resulting in a tax liability for borrowers;

• Encourages President Biden, in taking such executive action, to ensure that administrative debt cancellation helps close racial wealth gaps and avoids the bulk of federal student debt cancellation benefits accruing to the wealthiest borrowers; and

• Encourages President Biden to continue to pause student loan payments and interest accumulation for Federal student loan borrowers for the entire duration of the COVID-19 pandemic.

According to CNBC, canceling $50,000 in student loans per borrower would decrease the nation’s debt balance from $1.7 trillion to $700 billion. Though forgiving $50,000 per person would eliminate debt for 36 million borrowers, there’s reportedly an increasing rate of borrowers who owe over $100,000 in federal student loans.