Will Joe Biden cancel his student debt? What is his next step in this decision?

Friday, the president Joe Biden Extend the suspension of federal student loan payments until January 31, 2022. While announcing the news, he also said that this will be the last time the Ministry of Education will update the freeze caused by the coronavirus pandemic.

Biden said in the statement that the freeze is a “critical lifeline” that enables people suffering financial difficulties during the pandemic to afford basic necessities, and pointed out that the scope of the impact is due to the recognition that “one in six adults and One-third of young people” federal student loans.

Progressives and top leaders of the Democratic Party have not ignored the scope of the student loan crisis and the moment of this problem. Soon after the announcement, key figures in the student loan forgiveness debate expressed their opinions on the position of this temporary extension in combating university debt.

“Although this kind of temporary relief is welcome, it is far from enough,” Senate Majority leader Chuck Schumer, Senator of Massachusetts Elizabeth Warren And Massachusetts Representative Ayanna Pressley wrote in a joint statement. “Our broken student loan system continues to exacerbate the racial gap between rich and poor and hinder our entire economy. We continue to call on the government to use its existing administrative power to cancel the $50,000 student debt.”

New York Representative Jamal BowmanOne of the more progressive members of the House of Representatives also participated in this issue, he wrote on Twitter: “It sounds like January 31, 2022 is the deadline for cancellation of student debt. There is no longer a need for extension.”

Before Biden took office, Schumer and Warren took an offensive on this issue and announced through a clause in the Higher Education Act of 1965 called “Compromise and Reconciliation” that the president can waive the first $50,000 of student borrowers. debt.Since then, this topic has been accompanied by the government and Presley, Bowman and Alexander Ocasio-Cortez Express support for this issue.

Although Biden expressed interest in canceling the debt worth $10,000, he avoided this request. He said: “I am going to write off the debt of $10,000, but will not write off the debt of $50. [thousand]Because I don’t think I have the right to do this. Since then, reports and politicians’ calls have shown another situation. As the party increasingly desires to maintain its weak majority in the House of Representatives in 2022, debt cancellation is likely to happen.

“By extending it to 2022, you want to know which of our representatives will say no during the Republican or Democratic election cycle?” Brookings Institution Fellow, former dean and professor Andre Perry Tell Weekly newspaper“They are really putting pressure on people, because regardless of your political affiliation, young people feel the pressure of higher tuition and student debt. This is a savvy political move.”

A poll from Vox and Data for Progress found that more than half of voters support cancellation of $50,000 in student debt. Perry said that as wage growth lags behind inflation, the benefits of attending college become less obvious. However, according to data collected by the First American Homeownership Progress Index, since the pandemic, the homeownership demand of millennials has increased by 3.5%, which is the largest increase in generations. Perry believes that this trend is partly due to an improvement in the debt-to-income ratio of millennials.

As the issue progresses, Perry believes that continued pressure from politicians and advocacy groups will keep the issue public. The National Association for the Advancement of Colored People came forward to express support for this move, and the House of Representatives Majority Party whip Jim Cliburn also announced its support. As 2022 approaches, Perry expects that Biden will pay close attention to the direction of his party, as this topic will continue to unfold.

“This move really conveys Biden’s concern,” Perry said. “It is a political compromise to put the government in a better position than it is now in February. So, I cannot predict what will happen, but the pressure will not be relieved because they extend the freeze period.”