US President Joe Biden and his Democratic Party today are moving towards November on a slippery path that is now being added to the waters of student loan cancellations.
When he was just one of the blue presidential nominees in 2020, Biden called for the complete cancellation of federal student loans, which the Federal Reserve estimated at about $1.7 trillion a year ago, but there is no progress on waiving or extending the payment.
According to The Hill newspaper, the president is in a difficult position to make any progress ahead of the midterm elections as pressure mounts from borrowers and Democrats for a sweeping writedown.
This May 1 is the deadline for millions of people to repay what they spent if the federal student loan freeze imposed during the pandemic and extended five times since 2020 is not extended. .
In its assessment of the matter, the newspaper highlighted the pressure on the White House as the annulment advocates, along with key Democrats, want more than another halt and are calling for an annulment.
Senator Cory Booker, a New Jersey Democrat, said forgiveness is extraordinarily popular, not only among people with student loans but also among families of students, who some sources say could be important in the US election.
The number of students in debt has increased significantly over the past two decades. According to the Peter G. Peterson Foundation, federal student debt increased sevenfold between 1995 and 2017, from $187 billion to $1.4 trillion, The Hill quoted as saying.
The trade journal on congressional affairs estimates that Democrats are warning that inaction could cost them in November as the party attempts to hold majorities in the House and Senate.
Rep. Ilhan Omar, a Minnesota Democrat, advocates getting rid of the debt, which if not done will be dangerous for all of the blue in November, for whom she has indicated this issue is a priority for her party.
There is an approach to the issue within the White House and among Democratic lawmakers for either postponing it to 2023, allowing for the inflation debtors are facing, or canceling the debt outright.
In April, Biden applied to the Department of Education for a memorandum establishing his authority to end student debt through executive action. Since then, the government has not publicly announced whether the memorandum is complete, The Hill noted.
According to an Education Department source, the administration is keen to provide needed relief and meet the ultimate goal of making college more affordable over the long term.
“If Biden resumes repayments on May 1, we know nearly 8 million people will default,” said Thomas Gokey, an organizer of the Debt Collective.
“We don’t have to pause this crisis, we have to end it. Biden can pay off all federal student loans with one signature.”
Meanwhile, Democrats are grappling with the inflationary crisis, the pandemic and the rise in violence, compounded by student debt making the ground more slippery through November.