Democrats say stimulus bill 'helps pave the way to cancel $50,000 of student loan debt’ despite Bide

[mystery-ak]

Democrats say stimulus bill 'helps pave the way to cancel $50,000 of student loan debt’ despite Biden denial

Aarthi Swaminathan·Reporter
Mon, March 15, 2021, 5:56 PM·3 min read

Senate Democrats cited a provision in the new stimulus bill to again call on Biden to cancel $50,000 in student loan debt through an executive order — despite the president previously stating that he would not do so.

"Student loan debt is crushing millions of Americans," Senators Elizabeth Warren (D-MA) told reporters on Monday. "President Biden has an opportunity to fix that with the stroke of a pen. This bill helps pave the way to cancel $50,000 in student loan debt."

The recently-passed American Rescue Plan contains a provision championed by Senators Warren and Bob Menendez (D-NJ) that makes student loan forgiveness tax-free until 2026.

"Without this amendment, if someone were to have some or all of their student debt forgiven, they'd get stuck with the tax bill," Senate Majority Leader Chuck Schumer said during the press call. "Now, the provision would apply to nearly a hundred thousand students who are already in repayment programs that offer some student loan forgiveness, but even more importantly, and more crucially, it would apply to future efforts to forgive student loans."

Citing student loan cancellation as one way to address the racial wealth gap, Schumer added that the "Biden administration can and should go further and cancel $50,000."

more
https://finance.yahoo.com/news/democrats-student-loan-debt-biden-225600796.html

[Longiron]

Sounds great on PAPER and most LIB Students think what they are getting is FREE. Well not quite. If 50K is forgiven that is considered income according to the IRS and they get taxed on the 50K. Wait till the tax bill shows up and watch the LIBS head start exploding????

[The_Reader_David]

Cancelling student debt:  a policy that should unite conservatives (esp. fiscal conservatives) and what remains of the old Left.  You remember the version of the Left that claimed to be looking out for the interests of the working class.  By all means let the taxes of people who learned a trade, or took out a loan to buy a big-rig truck, or worked their way through college, pay off the loans of those who borrowed to get credentials for lucrative jobs in medicine, law or business, or at least white collar jobs in HR or compliance departments in some corporation or government agency. 

The only serious idea for dealing with the problem of unsupportable student debt is one no one want to seriously consider:  make it dischargable in bankruptcy the same way all other debt is. 

[The_Reader_David]

Sounds great on PAPER and most LIB Students think what they are getting is FREE. Well not quite. If 50K is forgiven that is considered income according to the IRS and they get taxed on the 50K. Wait till the tax bill shows up and watch the LIBS head start exploding????

You didn't read closely did you?

From the article:  "The recently-passed American Rescue Plan contains a provision championed by Senators Warren and Bob Menendez (D-NJ) that makes student loan forgiveness tax-free until 2026."