Schumer Leading Charge for Student Loan Forgiveness
Over 50 million Americans owe more than a trillion and a half dollars on student loans in the U.S., reportedly the largest source of consumer debt in this country.
According to a story on WIVB-TV is whether the economy, if those loans are forgiven, can stand to cover all that debt?
The average student graduates from college, with nearly $50,000 in student loans.
Some saying it is an unfair way to start life or career and an unnecessary drain on graduates.
“The bottom line is that college should be a ladder up, but student debt makes it an anchor down.” says Senator Chuck Schumer.
Schumer is calling on President-Elect Joe Biden to order forgiveness of up to $50,000 of all student debt which would wipe out most indebtedness for the average college graduate.
Many economists believe that student debt is a drag on the economy and evidenced by Millenials not buying homes, cars, or other goods because of it.
There is also an important stipulation in Schumer’s plan limiting the income of the borrower to $125,000.
Forgiving student loans would eventually fall on taxpayers.
There has been a temporary respite for students as President Trump froze collection activity, and the Education Department cut the interest rate to zero.
But the power to actually forgive loans, according to experts falls on Congress.