Student loans

Those Who Have Paid Off Student Loans Should Support Debt Cancellation

  • AOC said student loan forgiveness is good, even for those who have already paid off their loans.
  • Biden is closing in on action on debt relief, saying a decision will be made in the coming weeks.
  • He told reporters he was not considering forgiving $50,000 – an amount Progressives have demanded.

New York Rep. Alexandria Ocasio Cortez says student loan forgiveness is good for everyone, even those who have already paid off their debt.

“Maybe student loan forgiveness doesn’t affect you,” Ocasio-Cortez wrote in an Instagram Story, in response to a question about the benefits of debt forgiveness for those who have already paid off their loans. “That doesn’t make it bad. I’m sure there are definitely other things student borrower taxes pay for. We can do good things and reject the scarcity mentality that says doing something good for someone else comes at the cost of something to ourselves.”

AOC on Student Loan Forgiveness

AOC answers a question about student loan forgiveness on Instagram.

Rep. Alexandria Ocasio-Cortez

“Everything comes,” she added. “It’s okay. We can support things that we won’t directly benefit from.”

The student loan forgiveness conversation is gaining momentum after President Joe Biden told reporters last week that a decision on relief would be made “within the next two weeks.” Although he said he wasn’t considering canceling $50,000 in student debt for every federal borrower — an amount many progressives were calling for — a number of reports suggested the president was at least considering $10,000 of relief that will likely be tied to income limits, and it will be implemented before the payment pause expires after August 31.

Although many Democrats would like to see a broad loan forgiveness applied, Ocasio-Cortez Told the Washington Post, she worries about subjecting the relief to income thresholds.

“I don’t believe in a threshold, especially for so many frontline workers who are drowning in debt and would likely be excluded from aid,” Ocasio-Cortez said. “Cancelling $50,000 of debt is where you really make a dent in inequality and the racial wealth gap. $10,000 isn’t.”

Republican lawmakers think differently. Since news broke that the president was considering canceling some student debt this summer, many have criticized the possibility of broad relief. Arkansas Senator Tom Cotton, for example, wrote on the cost to taxpayers of debt forgiveness on Twitter: “Why should those who didn’t go to college or pay their loans responsibly be liable for $13,000 of new debt?

Utah Sen. Mitt Romney said the broad relief would be a “bribe” to voters – an attempt by Democrats to win the midterm election. Maine Senator Susan Collins previously told Insider that student loan forgiveness is “not fair” to those who have already paid off their debt and argued that people with higher incomes should not be eligible for the general relief that Biden is considering.

But most Democrats want to see Biden pass broad student loan relief for everyone, with no threshold.

“Instead of continually extending the break under pressure,” New York Rep. Jamaal Bowman said recently. tweeted“He must cancel all student loan debt.”