Democrats push Biden to go big on forgiving student loan debt

Democrats push Biden to go big on forgiving student loan debt
Senate Majority Leader Chuck Schumer and fellow Democrats Elizabeth Warren and Raphael Warnock make appeal at White House.
MAY 19, 2022
By  Bloomberg

Senate Majority Leader Chuck Schumer and fellow Democrats Elizabeth Warren and Raphael Warnock pitched President Joe Biden to go big with student loan forgiveness during a White House meeting Wednesday.

The three Democrats, who have been leading the effort in the Senate, support $50,000 in student debt relief, which is five times what Biden has indicated he would support.

“I’m pushing him to do this in a way that we help the Georgia folks I’m running into everyday,” said Warnock, who is running for re-election in a hotly contested race for his Georgia seat.

Warnock said Biden “is receptive to getting this done.”

After the meeting, the trio of Democrats had an intense private conversation on the Senate floor. Warren, who made student debt forgiveness a pillar of her 2020 presidential campaign, looked agitated while Schumer kept shaking his head.  

Warren wouldn’t comment on the discussion with Biden, but said afterward that she was still pushing for $50,000 in student loan debt to be forgiven for each individual.

“I want to see the maximum amount of debt relief possible,” Warren said in an interview. “Fifty thousand dollars would give immediate relief to tens of millions of families.”

Warren previously said that amount would do the most to help close the racial and gender wealth gaps.

While Democrats generally favor forgiving at least some of the debt, Republicans are opposed. A group of GOP senators led by Mitt Romney of Utah on Wednesday introduced legislation that would prohibit the administration from canceling student loan debt.

“This decision would not only be unfair to those who already repaid their loans or decided to pursue alternative education paths, but it would be wildly inflationary at a time of already historic inflation,” Romney said in a statement.

With legislation to wipe loans off the books unlikely, advocates have turned to the White House to provide relief.

Biden said that he was considering forgiveness of at least $10,000, but not as much as $50,000. The White House has signaled that people making more than $125,000 a year would likely be ineligible.

But the president hasn’t made up his mind about many details of the plan, including how much debt to forgive per borrower, people familiar with the matter told Bloomberg. And though White House officials have debated the contours of a forgiveness program internally for more than a year, there is no real consensus on the best path forward.

Latest News

LPL building out alts, banking services to chase wirehouse advisors, new CEO says
LPL building out alts, banking services to chase wirehouse advisors, new CEO says

New chief executive Rich Steinmeier replaced Dan Arnold on October 1.

Franklin Templeton CEO vows to "do what's right" amid record outflows
Franklin Templeton CEO vows to "do what's right" amid record outflows

The global firm is navigating a crisis of confidence as an SEC and DOJ probe into its Western Asset Management business sparked a historic $37B exodus.

For asset managers, easy experience is key to winning advisors' businesses
For asset managers, easy experience is key to winning advisors' businesses

Beyond returns, asset managers have to elevate their relationship with digital applications and a multichannel strategy, says JD Power.

Why retaining HNW clients ultimately comes down to one basic thing
Why retaining HNW clients ultimately comes down to one basic thing

New survey finds varied levels of loyalty to advisors by generation.

Stocks drop as investors digest Microsoft, Meta earnings
Stocks drop as investors digest Microsoft, Meta earnings

Busy day for results, key data give markets concerns.

SPONSORED Out with the old and in with the new: a 50% private markets portfolio

A great man died recently, but this did not make headlines. In fact, it barely even made the news. Maybe it’s because many have already mourned the departure of his greatest legacy: the 60/40 portfolio.

SPONSORED Destiny Wealth Partners: RIA Team of the Year shares keys to success

Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.