Democrats call for student loan cancellation, but GOP wary

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As millions of Americans grapple with the financial impact of student debt, many are watching what Congress might do about monthly payments or even loan cancellation.

Luckily, Amanda Deller works as a gym manager and CrossFit coach in Annapolis. But she’s got something weighing her down: $ 600 a month payment of his student loan.

“It adds stress to wanting to buy a house or to wanting to find a new apartment or a better apartment, it takes a big chunk of my salary.”

Deller is part of the 54% of the federal government student loan recipients with a debt of $ 20,000 or less; 7% of borrowers have more than $ 100,000; 39% fall in between.

Help could be on the way. President-elect Joe Biden calls on Congress to take immediate legislative action to forgive $ 10,000 per borrower.

“It keeps people out there in real trouble,” Biden said. “They have to make choices between paying their student loan and paying the rent – those kinds of decisions.”

Massachusetts Senator Elizabeth Warren and other progressives are calling on Biden to take executive action and forgive $ 50,000.

But the top Republican in the house is not expressing his support.

“I think getting the economy back on track is the best way forward on how to manage anyone’s debt,” said Rep. Kevin McCarthy, R-California.

Supporters say debt cancellation would stimulate the economy and increase home purchases. Opponents say forgiveness would disproportionately help those at the top, who likely have higher degrees. They also say the university is worth the cost, as workers with a bachelor’s degree earn nearly $ 1 million more over the course of their careers than those with a high school diploma.

Deller told Fox News she would be happy to receive help.

“Honestly, I would probably consider buying a house. I’m almost 30, so I’d love to settle down,” Deller said. “But I think it’s just unrealistic right now with this monthly payment.”

A limited student loan forgiveness plan is already available. Borrowers who work in the public service or for a nonprofit organization and regularly make their payments for 10 years may have their loan balances written off.

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