State Attorneys General urge Biden to write off $ 50,000 in student debt
President Joe Biden before boarding Marine One on the South Lawn of the White House on February 16, 2021.
Bloomberg | Bloomberg | Getty Images
On Friday, a group of attorneys general from several states sent a letter to Congress urging the passage of two resolutions calling on President Biden to write off up to $ 50,000 in federal student loan debt.
The letter is signed by the Attorneys General of Massachusetts, New York, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maryland, Minnesota, Nevada, New Mexico, New Jersey, Oregon, Vermont, Virginia, Washington and Wisconsin. He supports Senate Resolution 46 and House Resolution 100, both of which call on Biden to use executive action to write off up to $ 50,000 in education debt per borrower.
“The insurmountable debt burden of student loans has crippled the finances of families in this country and widened the racial wealth gap,” Massachusetts Attorney General Maura Healey, who led the coalition, said in a statement.
More Investing in you:
Here’s What Leading Black Americans Want the Next Generation to Know
President Biden is committed to closing the racial wealth gap. Here are his projects
Black-owned businesses hope this P3 cycle won’t fail them
Support for forgiveness of larger amount of debt per borrower comes just days after Biden said he would not cancel until $ 50,000 in student loan debt, but said he was still considering writing off $ 10,000. Still, debt cancellation advocates, including Senate Majority Leader Chuck Schumer, DN.Y., and Senator Elizabeth Warren, D-Mass., And the borrowers themselves continued to pressure Biden to erase a larger amount.
Certainly, many argue that canceling student debt is unfair to those who have paid off their loans, and that canceling a lower amount is a more targeted approach.
The letter says many borrowers struggling with student loan debt fall victim to for-profit colleges, have been hit hard by the pandemic, and have few options for relief if their debt burden is unmanageable. Student loan debt generally cannot be discharged in bankruptcy, and very few people have been able to obtain relief through current programs such as the civil service loan forgiveness.
Additionally, attorneys general argue that forgiving $ 50,000 in student loan debt would help close the racial wealth gap for black and Latin borrowers.
“This move would help address predatory practices that have caused disproportionate harm to people of color, stimulate our struggling economy, and create a viable future for millions of Americans,” they wrote.
Disclosure: NBCUniversal and Comcast Ventures are investors in Tassels.