April 14, 2021

Cheddar News: Biden Should Cancel Student Loans to Improve Racial Equity, Says Sen. Elizabeth Warren

Senator Elizabeth Warren, Senate Majority Leader Chuck Schumer, and several of their Democratic colleagues are pressing President Joe Biden to forgive up to $50,000 for every American burdened by federal student debt. 
"If we canceled $50,000 of student loan debt right now, if Joe Biden would do that, two things would happen immediately: about 84 percent of all the people who have student loan debt would be completely debt-free and we would be able to close the Black/white wealth gap for borrowers by about 25 points and for Latinos, by 27 points," Warren told Cheddar. The wealth gap figures come from a 2019 analysis provided to the senator. 
She also noted that those experts found that on average, after 20 years, white borrowers end up owing about 5 percent of what they originally borrowed while Black borrowers tend to owe 95 percent of their loan after two decades. "There's not a single other thing" Biden could do right now that would have such a massive impact improving racial equity in the U.S, she said.


Read the full article here.

By:  Lawrence Banton
Source: Cheddar News