Should Biden Forgive Student Loan Debt by Order in Council?

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Senate Majority Leader Chuck Schumer, DN.Y., and Senator Elizabeth Warren, D-Mass., Call on President Joe Biden and Vice President Kamala Harris to write off up to $ 50,000 in federal debt student loan by decree.

In a recent CNBC editorial, senators use a relatively new argument, tying student debt to the fate of borrowers 50 and over.

About 6.3 million of the more than 43 million student loan borrowers are between the ages of 50 and 64, and 1 million are over 65, according to senators. Together, these two groups account for $ 290 billion, or about 19%, of the total federal student debt burden.

“Like the massive debt burden of young Americans, trying to balance this mountain of student debt inevitably pulls our seniors down as well,” senators said.

Thirty-seven percent of Americans over 65 with federal student loans are in default, allowing the federal government to seize up to 15% of their monthly Social Security checks, according to the AARP.

“The federal government has turned its back on the young and old in the Americas with student loan debts,” write the senators. “The system let them down, and today they are drowning in debt when they should be enjoying the security of their retirement in their golden years. “

If they can’t pay their debt, the Social Security Administration can foreclose on their Social Security benefits and nearly three-quarters of those foreclosures were on student loan fees and interest, not principal, according to the two senators. .

“No senior should have to make life-changing decisions between paying off their student loan, putting food on the table, or protecting themselves and keeping their families safe and healthy, especially during this crisis. public health … “, wrote the senators. “And they certainly shouldn’t have their hard-earned Social Security taken away.”

What older borrowers need

A new report from the Employee Benefit Research Institute has found that 15% of households headed by someone aged 55 and over have student loan debt, and that their level of debt has increased by 321% since 1992. Almost half of the debt was for their own education, about 44% was for their children, and the remaining debt was for both.

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