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After student loan repayment pause, Democrats call on Biden to cancel all student loan debt

After student loan repayment pause, Democrats call on Biden to cancel all student loan debt
Written by Publishing Team

Jacksonville, Florida. — The Biden administration on Wednesday extended the student loan deferral that has allowed tens of millions of Americans to defer debt payments during the pandemic.

It is estimated that the stalled payments will save borrowers $5 billion a month, according to the US Department of Education.

Loan payments have been suspended since the start of the pandemic. It began with the CARES Act and was then extended by former President Donald Trump and President Joe Biden.

But a prominent group of Democrats wants Biden to erase the debt for good.

“Good news! Now it’s #CancelStudentDebt time!” Senator Chuck Schumer tweeted after Biden’s announcement.

Senator Bernie Sanders said, “I applaud President Biden for once again halting federal student loan payments to 45 million Americans. Now let’s call it off. All.”

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Daisy Tackett, who lives in Jacksonville and has taught at New York University and the University of Kansas, said canceling student loan debt would make a huge difference in her life. She had to take out $250,000 in federal and private loans to graduate.

“Student loans are really important to me because obviously I have a lot of student loan debt,” Tackett said. “But I also worry about how many other people have student loan debt. It stops people from buying homes, from getting cars, it’s ruining their credit. It kept a lot of people stuck when we were promised to move on after getting a college degree.”

A Florida financial attorney who specializes in student debt said students should not plan to have their federal loan debt paid by the government.

“For now, you don’t have to worry about paying. But if you can pay, it’s a good idea to pay, because there is no interest now accruing on the outstanding balance. Because there is no interest on the outstanding balance, every payment is You pay it goes to capital, which reduces that significantly.”

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According to the Education Data Initiative, approximately 12% of the Florida population has student loan debt totaling $98.2 billion and the average student loan debt in Florida is more than $38,000.

Biden indicated this week that he wants borrowers to resume paying their loans once the new moratorium expires on May 1.

Republicans have also expressed opposition to debt cancellation, saying the Department of Education has no legal authority.

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