New York Attorney General Calls on Education Secretary to Fix Student Debt Problem
NEW YORK (WKBW) – New York Attorney General Letitia James, along with attorneys general in 22 other states, calls on U.S. Secretary of Education Dr.Miguel Cardona to further tackle student debt. students.
In a letter to the Secretary of Education, James and the other Attorneys General ask Dr Cardona and his administration to answer the following questions
- Continue the policy of suspending student loan payments and waiving interest for as long as necessary to support distressed borrowers;
- Pursue the policy of suspending involuntary collection activities, as well as authorizing suspended payments to count both in the utility loan forgiveness program and in the income-based repayment plan (IDR) release;
- Enact reforms so that student loan borrowers can access and stay in the IDR plans to which they are entitled – allowing borrowers to have more affordable monthly payments, avoid the serious consequences of default and obtain the cancellation of their loan if necessary; and
- Enforcement of the higher education law’s paid employment requirement, which would protect borrowers from for-profit programs that do not prepare students for a career.
“With over $ 1.7 trillion in student debt across the country, now is the time for us to take bold action to end this crisis and provide our students with the tools they need to move on. ‘before,’ Attorney General James said. “We need to make access to higher education more accessible and that starts with affordability. Imagine what could be achieved without the heavy burden of student debt. I encourage the Biden-Harris administration to keep all options on the table, including loan cancellation. “
President Joe Biden supports the cancellation of $ 10,000 in debt. Senator Chuck Schumer (D-NY) and others support the cancellation of $ 50,000. The Biden administration said it was looking at whether he had the power to use an executive order.
“The president can do it with the stroke of a pen, you don’t need legislation, and we urge him to do it,” Schumer said.
Monthly federal student loan payments are on hold due to the pandemic.
“This is part of the reason why I think we haven’t seen a huge rush to adopt any sort of student loan forgiveness proposal because there is still some kind of lifeline for borrowers.” Said Andrew Pentis, senior writer at Student Loan Hero. by Lending Tree.
The break lasts until September and could be extended. Pentis does not think the president will act before then because it is an issue that divides both borrowers and experts.
“You have experts who say that the massive cancellation of student loans in an untargeted way is a government document,” Pentis said.
He said some borrowers who had already paid off their loans wondered why they wouldn’t receive the benefits of a forgiveness plan.
According to Student Loan Hero data, the average monthly student loan payment in Erie County is $ 250. Schumer said people would put that extra money back into the economy.
According to Student Loan HeroA $ 10,000 loan forgiveness would cancel all federal debt for one in three borrowers.
You can read the full letter by clicking on here.