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Will Biden cancel student loans? Mitt Romney asks what the “bribe” will be next

 Will Biden cancel student loans?  Mitt Romney asks what the “bribe” will be next

Is forgiveness of student loan arrears a measure to support President Joe Biden’s poll figures, or is it a smart strategy to raise millions of borrowers struggling with loans?

In any case, student loan forgiveness has turned into political football, and Senator Mitt Romney, Utah, is wondering what “bribe” Democrats are offering next.

“Desperate polls call for desperate measures: Democrats expect to forgive trillions of student loans. Other bribe offers: Forgive car loans? Forgive credit card debt? Forgive a mortgage? And put a wealth tax on the super-rich to pay for it all. What could go wrong? ” Romney wrote in a tweet Wednesday.

According to the results of the new Harvard Policy Institute pollonly 41% of adults aged 18-29 approve of President Biden’s work, compared to 46% in the fall of 2021 and 59% most last spring, according to a recent CNN report.

The Biden administration is defending the plan

“Student loans should never have been life imprisonment, but it is certainly felt for borrowers who are not entitled to repay the debt,” Education Minister Miguel Cardona told the department’s latest press release.

The department has begun work “to address years of administrative failures that have effectively denied pardon promises to some borrowers involved in income-based repayment plans (IDR),” the press release said.

The latest steps are expected to help about 3.6 million borrowers approach debt forgiveness, and 40,000 borrowers will receive immediate forgiveness, according to the Department of Education.

Will Biden cancel student loans?

On Thursday, Biden said he would decide to forgive the student loan in the coming weeks.

However, the president said he was “not considering a $ 50,000 debt reduction” during a speech at Roosevelt Hall in the White House. This was reported by CNBC.

“But I am carefully considering whether there will be additional debt forgiveness,” the president added. “I’ll get an answer to that in the next couple of weeks.”

Biden did not say how much debt he is considering repealing, but during the 2020 presidential campaign he expressed support for the $ 10,000 apology.

Senator Elizabeth WarrenD-Mass., Urges the Biden administration to do more.

In a recent speech on NBC’s “Meet the Press,” Warren called on Biden to cancel $ 50,000 in student loan arrears for tens of millions of people nationwide.

“You know, keep in mind that 40% of people who are in debt on a student loan don’t have a college diploma. These are people who tried, but life succeeded. You know, pregnancy and work at three jobs, and my mom got sick and had to move to another city, ”Warren said in video on twitter on thursday. “All of this, but now they’re earning what high school graduates are earning, and trying to manage debt at the college level.”

Warren said there is “great racial inequality. African Americans take more money to go to school, borrow more money while they teach, find it harder to pay them when they go out. ”

The task of the Democrats is “to help improve people’s lives. … The president could have done it himself. ”

What does this mean in practical terms?

Earlier this month, the Department of Education extended the pause in student loan payments until Aug. 31, which means that borrowers of federal student loans are not required to make payments on federal student loans yet. Private student loans are not subject to relaxation.

It also means there is no new accrual of interest on federal student loans and recovery of student loans in default.

Do I still have to pay student loans?

According to Forbes magazineFederal student loan borrowers can save significant money by making additional payments on student loans.

“This period of student loan facilitation is a unique opportunity to make additional payments on student loans without accruing interest. With less principal, it means that interest rates may rise less, which means you will be able to repay student loans faster, ”the magazine writes.

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