Democrats aim for $ 50,000 loan forgiveness after student loan relief bills

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  • Democratic senators have touted further student loan relief to push Biden to write off a $ 50,000 debt.
  • The senses. Warren and Menendez added an amendment to the stimulus package to make it easier to cancel loans.
  • The amendment, now law, ensures that student debt that is canceled is not taxable.

After additional student loan relief measures were announced Monday, Democratic senators touted the change and again pushed President Joe Biden to write off $ 50,000 in student loan debt.

Education Secretary Miguel Cardona canceled student debt for 41,000 disabled borrowers and removed the requirement to submit income documents for more than 230,000 borrowers.

“So we have very good news for so many people who have student debt, the burden of student debt on their shoulders… We have taken another good step forward in our progress,” said the head of Senate majority Chuck Schumer at a press conference. Monday.

Schumer, speaking alongside Senators Elizabeth Warren and Bob Menendez, explained that the two senators drafted an amendment to Biden’s $ 1.9 trillion economic stimulus bill that ensured that borrowers whose loans were canceled do not have to pay taxes on them.

“Once student debt is canceled, it doesn’t matter how much, no taxes,” Schumer explained.

Menendez said it was a “big deal” because, while they pushed Biden to write off student loans, those whose debt was canceled wouldn’t have to worry about receiving a tax bill from the Internal Revenue Service thereafter.

The tax rate before the bill was tabled was $ 2,200 for every $ 10,000.

Warren hailed the move as progress, but called on Biden to write off the $ 50,000 debt of millions of borrowers.

“This is about moving forward, this is our momentum moment. We have put in one more room and we are now ready for President Biden to sign the piece of paper to say” Write off $ 50,000 in student loan debt, “Warren said, adding that the cancellation would help narrow the racial wealth gap in the country.

Biden has already rejected calls to erase $ 50,000, but said he supports the $ 10,000 pardon.

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