Add news
Нами Накагава — Kimi Wa Kirameki/Ты - Сияние! (feat. Ichigo Tanuki)
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020October 2020November 2020December 2020January 2021February 2021March 2021April 2021May 2021June 2021
123456789101112131415161718
19
20
21
22
23
24
25
26
27
28
29
30
News Every Day |

'We are facing a student loan time bomb,' Senator Warren says amid $50,000 forgiveness push

With the U.S. student loan payment pause set to end after September, Senator Elizabeth Warren (D-MA) continues to push for student loan forgiveness as a remedy to a potentially disastrous scenario.

If the payment pause is lifted without cancellation in October, "we are facing a student loan time bomb that when it explodes could throw millions of families over a financial cliff," Warren said during a town hall hosted by the American Federation of Teachers on Tuesday night.

"The average borrower is going to have to start repaying nearly $400 a month to the government, instead of spending that money in our economy," she added. "Student borrowers are at risk of being thrown into an extraordinary financial hardship. When the pause on student loan payments interest ends on September 30, people aren’t going to know how much they owe. They’re going to miss deadlines suddenly. They’re going to be delinquent. They’re going to owe penalties on this."

Federally-backed student loan payments have been paused since March 2020, and President Biden extended the pause through to at least September 30 upon taking office.

Screenshot of Warren during the AFT town hall
Screenshot of Warren during the AFT town hall

'The time is now'

Student loan balances increased by $29 billion to $1.58 trillion in the first quarter, according to the New York Fed

At the same time, only 6.2% of student loans were in serious delinquency or default in the first quarter of 2021 due to the payment pause and debt collection moratorium

(Source: New York Fed)
(Source: New York Fed)
(Source: New York Fed)

That stunning drop could be reversed, Warren argued, if payments were restarted without sufficient borrower education and widespread cancellation.

"So the time is now, let’s get this resolved right now," Warren said. "We need to cancel $50,000 of debt today that will wipe out all of the student loan debt for 84% of the people out there, and then we can concentrate on the remaining 16%. We need to do it now before there’s a spike in defaults once these loans are turned back. So, that’s part of the reason the urgency of this moment."

The Washington Post reported last week that White House officials are not including student debt cancellation in their upcoming budget proposal. 

In March, White House Chief of Staff Ron Klain told Politico that President Biden had asked Education Secretary Miguel Cardona to compile a memo on whether the president has the legal authority to forgive $50,000 in student loan debt through executive order. The Education Department has not responded to requests for comment on the memo.

"Canceling $50,000 in student loan debt would be the single most effective executive action that President Biden could take to provide massive consumer-driven stimulus for our economy and to advance real racial justice throughout our nation," Warren said. "Data from the Department of Education reveals that if we canceled $50,000 of student loan debt, 84% of borrowers — that's 36 million people — would have their student loans completely wiped out."

Aarthi is a reporter for Yahoo Finance. Follow her on Twitter @aarthiswami.

Read more:

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit.





Read also

The Easiest Tostadas To Make EASY La Siberia

Naked Scottish football fan led away by cops in Hyde Park as thousands descend on London ahead of England Euros clash

Does Euro 2020 have a penalty shootout if teams are level on points and goal difference?





News, articles, comments, with a minute-by-minute update, now on Today24.pro



Today24.pro — latest news 24/7. You can add your news instantly now — here
News Every Day

Kids Fun TV Compilation Video Frozen Elsa and Anna Frozen 2 Skits