Attorneys-Basic urge Biden to cancel scholar debt of $ 50,000

President Joe Biden before boarding Marine One on the South Lawn of the White House on February 16, 2021.

Bloomberg | Bloomberg | Getty Images

A multi-state group of attorneys general sent a letter to Congress on Friday calling for the adoption of two resolutions calling on President Biden to cancel up to $ 50,000 in federal student loan debt.

The letter is signed by the attorneys general of Massachusetts, New York, Connecticut, Delaware, Columbia District, Hawaii, Illinois, Maryland, Minnesota, Nevada, New Mexico, New Jersey, Oregon, Vermont, Virginia, Washington, and Wisconsin. It supports Senate Resolution 46 and House Resolution 100, which urges Biden to take executive action to cut up to $ 50,000 in educational debt per borrower.

“The burden of insurmountable student loan debt has crippled the finances of families in this country and widened the racial gap,” said Maura Healey, Massachusetts attorney general, who led the coalition, in a statement.

More from Invest in You:
This is what prominent black Americans want to convey to the next generation
President Biden pledges to fill the racial wealth gap. Here are his plans
Black-owned companies hope this round of PPP won’t fail them

Support for canceling a larger amount of debt per borrower comes just days after Biden announced he won’t cancel up to $ 50,000 in student loan debt but continues to consider writing off $ 10,000. Advocates of debt relief, including Senate Majority Leader Chuck Schumer, DN.Y., and Senator Elizabeth Warren, D-Mass., And the borrowers themselves have continued to pressurize Biden to delete a larger amount.

Of course, many argue that canceling student loan debt is unfair to those who have repaid their loans and that canceling a lower amount is a more targeted approach.

The letter said that many borrowers struggling with student loan debt are victims of nonprofit colleges, have been badly hit by the pandemic, and have few options for relief when the burden of their debt is unsustainable. Student loan debt, in general, cannot go bankrupt, and very few people have been able to get relief from current programs such as public service loans.

In addition, attorneys general argue that the $ 50,000 debt relief on student loans would help fill the racial wealth gap for black and Latin American borrowers.

“This move would help eradicate predatory practices that have disproportionately harmed people of skin color, fuel our weak economy and create a viable future for millions of Americans,” they wrote.

SIGN IN: Money 101 is an 8-week financial freedom learning course delivered to your inbox weekly.

CHECK: 3 Moves Of Money Helped Me Save $ 100,000 By The Age Of 25, Break Your Budget Blogger says via Grow with acorns + CNBC.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

Comments are closed.