Sen. Chuck Schumer [D-N.Y.], and Sen. Elizabeth Warren [D-Mass.], have announced a resolution that aims to cancel $50,000 of student loan debt for all federal student loan borrowers.
The resolution calls on President Trump “to take executive action” to forgive the debt as a means of helping individuals during the coronavirus pandemic.
About 75% of all individuals with unpaid federal student loans would see the amount they owe completely wiped out if the resolution were to be enacted.
Many student loan programs have been put into forbearance since the coronavirus pandemic struck the United States in March. But what happens once those programs end, especially with millions of individuals out of work nationwide, is an issue of focus for lawmakers.
“For far too long the sunny, American optimism of our young people has been clouded by crippling student debt,” Sen. Schumer said, in a statement. “Education is supposed to be a ladder up, but studies have shown that student loans hold people back and prevent young college graduates from owning homes or starting small businesses. This holds our entire economy back, which we cannot afford after the financial devastation of COVID. That is why I will prioritize student debt forgiveness in 2021.”
There does appear to be some political motivations behind the resolution, according to a published report. Noting that President Trump and Betsy DeVos, the Secretary of Education, have opposed measures in the past aimed at forgiving student loan debts, Sen. Schumer said that the “next president” could address the resolution “early next year.”
