President-elect Joe Biden working on relieving students with college debt

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President-elect, Joseph ‘Joe’ Biden has begun working on some of his promises by saying there should be an immediate congressional action on student loans, after Democrats suggested he should sign an executive order to forgive student debt.

A Biden official has told Fox News that Biden is calling for immediate action that will forgive $10,000 of student loan debt for borrowers as part of the coronavirus relief package. In order for the action to proceed, action would have to be taken in through Congress.

Student loan borrowers haven’t had to make payments since March due to COVID-19 but the hold off on payments is set to expire on December 31, unless President Donald Trump or Congress act to extend it.

If neither push the deadline back, millions of student loan payments will have to begin payments for their student loans a couple of weeks before President-elect Joe Biden takes office on Inauguration day, January 20, 2021.

If Biden reinstates the student loan recovery, it could possibly create issues for borrowers as well as student loan processors.

Senator Minority Leader of New York, Charles ‘Chuck’ Schumer ultimately wants Biden to bypass Congress and cancel billions of dollars in student loan debt through an executive action. “I have a proposal with Elizabeth Warren that the first $50,000 of debt be vanquished, and we believe that Joe Biden can do that with the pen as opposed to legislation.” Schumer spoke to The Ink

Schumer has urged Biden to adopt the FDR-style agenda during his first 100 days in office which will include strengthening labor unions, changing the tax code so that it benefits workers rather than companies, passing a broad infrastructure bill, adopting a climate agenda, and taking into account racial injustice.

Some have argued that using power to get rid of college debt for students exceeds the president’s authority granted by Congress because canceling student loan debt would add to the nation’s growing national deficit that totals $3.1 trillion for the 2020 fiscal year.

Student loan debt has doubled over the past decade, nearing $1.7 trillion. Roughly one in six American adults owes money due to federal student loan debt, which is said to be the largest amount of non-mortgage debt in the U.S.

Federal Reserve Chairman Jerome Powell stated that student loan debt has been a major hindrance in America’s “economic life.”

Joe Biden is here to help those who are in real trouble such as the individuals that have to choose between paying rent or paying their student loans. It is still unsure when those with student loans will have to resume payments, however with December 31st quickly approaching many are awaiting the outcome of this issue.