President Joe Biden has been urged by the Democrats to use his executive powers to ease the life of the students. In a proposal presented to President Biden, the representatives have put forward the request to forgive around $50,000 in student loans.
This idea was presented by Senator Schumer and Senator Elizabeth Warren who want Biden to use his executive power.
The reason behind canceling this $50,000 loan is to ensure that students are exempted from tax liabilities.
People from all across the globe travel to America to search for opportunities and study, these people end up getting loans for their studies, and then they have to pay back over several years.
As the COVID-19 situation has worsened in America, the students were unable to repay their loans on time. Hence, they were unable to continue their studies during this pandemic.
The lawmakers have urged that student loan repayments should be averted in the wake of the global pandemic.
Many students are unable to repay student loans. In New York and other parts of the country, parents are finding it hard to make their children continue their education in this crunch time. It has because millions of Americans lost their job in this pandemic.
All eyes are now on President Joe Biden, who just has to sign a paper and issue an executive order in this regard. This will help the people to meet up with their student loan repayments.
With this proposal, the Democrats have seconded President Biden’s idea that he had presented before. He wanted the student loan repayment facility should be extended till September 30, 2021.
According to experts, if Biden signs an executive order, it is going to be a massive step towards helping students deal with their educational expenses.
It’s surprising to note that every sixth American owes money to the federal government in student loan debts.