Democrats are now proposing to cancel as much as 50 thousand dollars per person in Federal student loan debt for Federal student loan borrowers. And if you and your family worked hard to save and pay on time and many in full their student loans, you are now feeling betrayed by your own country.
“Education is supposed to be a ladder up, but for too many the burden of student debt has become an anchor holding them down,” said Senate Majority Leader Chuck Schumer (D-NY). “Massive student loan debt is exacerbating the historic and overlapping crises our country is facing, especially for communities of color, which have been hit hardest by the health and economic consequences of COVID-19. Our resolution lays out a way for the president to change that. Canceling student loan debt would help boost our struggling economy and close the racial wealth gap that has persisted for far too long.”
“Even before the coronavirus pandemic plunged our economy into chaos, student loan borrowers were already in crisis,” said Senator Elizabeth Warren (D-MA). “The President of the United States has the power to broadly cancel student loan debt, help close the racial wealth gap, and give a big boost to families and our economy. It’s time to use this existing authority and permanently improve the lives of tens of millions of Americans.”
But is this money going to the poor or the rich?
Democrats proposal, while it seem like a “great idea” is not going to help the poor. Most of the highest loans are accumulated by those who have chosen to go for post graduate studies, meaning that by virtue of the jobs they can afford to pay off these loans quickly, which means this money is going to mostly upper middle class and rich and definitely not the poor.
Listen and Subscribe to my podcast: