(PatriotWise.com)- Massachusetts Senator Elizabeth Warren lost her bid for the Democratic presidential nominee, but she’s still attempting to push a very progressive agenda.
During a hearing for the Senate Banking Committee Tuesday, Warren urged Joe Biden to cancel all student loan debut. While going back and forth with Jay Powell, the chairman of the Federal Reserve, Warren said:
“All on his own, President-elect Biden will have the ability to administratively cancel billions of dollars in student loan debt using the authority that Congress has already given to the secretary of Education. This is the single most effective economic stimulus that is available through executive action.”
Cancelling student debt is something that Warren has long pushed for. It’s a hugely progressive measure, and one that would undoubtedly give unfair benefits to Americans. Only those who actually have student debt will benefit.
Those who paid off student loans are out of luck. And hard-working Americans who didn’t go to college will be left with no economic help whatsoever.
The CARES Act that Congress passed in March has allowed students to defer payments on their government-backed student loans. They haven’t accrued any interest during the deferment period, nor will they be charged any penalties. That relief measure is set to expire at the end of the year, though, unless more legislation is passed.
For his part, Biden has supported some of these measures. One idea he’s supported is cancelling up to $10,000 of student loans. However, he and Democrats would have a very tough time getting something like this passed through Congress unless the Democrats somehow take full control of the Senate, too.
That is highly unlikely to happen, though. Democrats would have to win both Georgia seats in the January 5 runoff election, and they are heavy underdogs in both of those races.
Warren argued during the Banking Committee hearing that cancelling student debt would be a huge benefit to the economy. She even brought up previous comments Powell made about his concerns over student debt.
Powell, though, said many people “have been calling out the rising student debt for some years now.” But, he continued, he would leave those decisions to policymakers as to what type of relief is most appropriate.
Warren pressed Powell, asking:
“If people who instead of spending that money in the economy are spending that money by sending money back to the federal government on their student loan payments, that is a problem for the economy, is it not?”
Powell did agree somewhat, saying if people are unable to pay student loans, it could hurt their credit and their future ability to purchase a home, for example.
While it would be a huge boon for Americans who have loads of student loan debt, this progressive program could be extremely unfair to those who don’t have loans. At a time when the federal government is in desperate need of money, too, it shouldn’t be looking at programs that would rid it of revenue it needs.