Home Breaking News Biden rules out canceling $50,000 in student debt — but Schumer and...

Biden rules out canceling $50,000 in student debt — but Schumer and Warren plan to keep pushing him

Biden rules out canceling $50,000 in student debt — but Schumer and Warren plan to keep pushing him

U.S. President Joe Biden participates in a CNN town hall in Milwaukee, Wisconsin, February 16, 2021.

Leah Millis | Reuters

Early Newspaper

President Joe Biden shot down his fellow Democrats’ push to forgive up to $50,000 in federal student debt per borrower.

“I will not form that happen,” the president responded when an attendee at a CNN town hall Tuesday night requested him what he would finish to homicide a loan burden of up to $50,000 for thousands and thousands of Americans.

The comments will disappoint student loan holders waiting to stare whether or not Biden eases their financial strain and congressional Democrats who cling urged him to take action. Lawmakers led by Senate Majority Leader Chuck Schumer, D-N.Y., Sen. Elizabeth Warren, D-Mass., and Catch. Ayanna Pressley, D-Mass., earlier this month pushed Biden to homicide $50,000 in debt and argued he had the energy to finish so without Congress.

On Tuesday, Biden said, “I produce not think I genuinely cling the authority” to forgive this kind of shipshape debt burden thru executive action. He added that he’s “ready to write off $10,000 in debt” — the amount he proposed during the 2020 presidential campaign.

Biden has said he would label laws forgiving up to $10,000 in student loans if Congress passes it. The White Home is additionally reviewing his upright authority on the say.

Schumer and Warren on Wednesday again referred to as on Biden to homicide $50,000 in debt. In a joint assertion, the senators renowned that Presidents Barack Obama and Donald Trump broken-down executive energy to forgive student loans and said they’re assured the Biden administration will have faith upright experts “who cling concluded that the administration has wide authority to instantly bring mighty-wished reduction to thousands and thousands of Americans.”

“An ocean of student loan debt is holding support 43 million debtors and disproportionately weighing down Dusky and Brown Americans,” Schumer and Warren said. “Cancelling $50,000 in federal student loan debt will serve discontinuance the racial wealth gap, serve the 40% of debtors who finish not cling a college diploma, and serve stimulate the economic system. It be time to act. We are able to keep fighting.”

In ruling out forgiving $50,000 in debt, Biden said he had concerns about disproportionately helping folk who went to prestigious colleges and secured excessive-paying jobs. The president said he would rather use the cash to pay for early childhood training.

Catch. Alexandria Ocasio-Cortez, D-N.Y., criticized Biden’s arguments in a pair of tweets early Wednesday. She downplayed the significance of the college debtors attended, saying “complete generations of working class young folk had been inspired to shuffle into more debt under the guise of elitism.”

She added that the federal government don’t cling to form a alternative between supporting early childhood training and relieving student debt.

“We are able to cling each and every,” Ocasio-Cortez wrote.

Subscribe to CNBC on YouTube.

Biden rules out canceling $50,000 in student debt — but Schumer and Warren plan to keep pushing him