Biden seeks to write off $ 10,000 in student debt, report says

STATEN ISLAND, NY – President-elect Joe Biden will call on Congress to immediately cancel $ 10,000 in student debt for all borrowers, according to a recent CNBC report.

His request is also expected to include an extension of the moratorium on payments which is due to expire this month, according to the report.

The $ 900 billion pandemic aid package adopted last month did not include an extension of the payment hiatus, which went into effect in March at the start of the coronavirus (COVID-19) pandemic. It’s unclear how long Biden’s proposed break will be extended, according to CNBC.

CNBC pointed out a recent Pew study who found six in 10 borrowers said it would be difficult to start paying student loan bills again in the coming month. About 90% of federal student loan borrowers have taken advantage of the government’s option to suspend payments during the pandemic, the data shows, according to CNBC.

The cancellation of $ 10,000 in student debt is in line with Biden’s promises during his presidential campaign. However, he faces pressure to write off more debt and bypass Congress to do so, the outlet reported.

Senator Charles Schumer called Biden last month, CNBC reported, to forgive $ 50,000 per student borrower on the first day of his presidency, telling him, “All you need is a sudden pen. You don’t need Congress. “

According to Forbes, the cancellation of $ 10,000 in student debt would wipe out all the unpaid student loans of more than 16 million people. It would also reduce the loan balance by 50% carried by an additional 9.3 million people, or about 70% of borrowers.

STUDENT LOANS IN NEW YORK

Data published by LendEDU in 2020 found that the the average monthly student loan payment in New York was $ 223.10 – ranking fourth in the country. Nationwide, the average monthly student loan payment was $ 210.73.

LendEDU also analyzed how long it would take residents of each state to pay off their average student loan debt. The payment term in years is based on the assumption that a student borrower made the same payment amount each month until the repayment was complete.

As the average New York student loan debt stands at $ 31,523 – and with an average monthly payment of $ 223.10 – it would take almost 11.7 years to pay off New York student loan debt.

Nationwide, the term for student debt repayment was 11.3 years.

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