Schumer, Gillibrand praise Biden announcement to cancel $10K in student loan debt

By Tom Rivers, Editor Posted 24 August 2022 at 10:10 pm

President Joe Biden today announced a plan to cancel $10,000 in federal student loan debt and up to $20,000 of student loan debt if the borrowers received a Pell grant. Individual borrowers making less than $125,000 a year are eligible.

Student loan payments also will continued to be paused with repayments to start in January.

“For the national movement of millions of Americans who came together to tirelessly demand justice on student debt for years: This victory belongs to you,” Senate Majority Leader Charles Schumer tweeted today. “For decades, borrowers looking to pursue the American Dream have been held back by a predatory student loan system that turned their dreams into debt—while banks and collectors profited. Today, @POTUS helped right this wrong and helped restore a pathway to the middle class.”

U.S. Sen. Kirsten Gillibrand issued this statement in support of the Biden announcement: “Democrats have been delivering for middle-class families struggling with inflation in this economy, and today, President Biden is delivering yet again in alleviating at least $10,000 in student loan debt for those who need the relief most. This policy is supported by a bipartisan majority of Americans and will help create jobs, increase home ownership and spur new small businesses.”

Congresswoman Claudia Tenney issued this statement, critical of the Biden announcement:

“Pressured by far-left special interests, President Biden has caved once again. Joe Biden’s announcement that he will try to ‘cancel’ federal student loan debt for high earners not only bypasses Congress, it is a blatantly partisan effort to appease his far-left critics amid his record-low poll numbers. It is not only bad policy, it is wholly illegal and if the rule of law still matters in America the decision should be stopped by the Courts. President Biden and his Department of Education have both said previously that the President does not have the authority to take this misguided step, and nothing has changed aside from his falling poll numbers.

“‘Canceling debt that individuals willingly chose to take on sets a terrible precedent for our country. Those who paid off their college or who simply chose not to attend will now be stuck footing the bill for the 10% of Americans who still have debt outstanding. With an estimated cost of $300 billion, this disastrous policy is sure to fuel more inflation while catering to higher earners. Lastly, colleges and universities will have even less incentive now to lower skyrocketing tuition costs, kicking the can down the road and leaving future generations with the exact same problem.”