Joe Biden is reportedly considering a trillion dollar stimulus package for January if he wins the November election. Will he understand student loan forgiveness?
According to Axes, Biden and his economic advisers examine the current economic crisis and recognize the need for further federal intervention. While hesitant to put a price on the eventual stimulus, they have suggested it could be anywhere from $ 1,000 billion to $ 2,000 billion, depending on what, if anything, Congress passes before that date.
But we don’t know what this stimulus would include. Popular provisions of the CARES Act include stimulus checks, improved unemployment benefits and a student loan repayment break. Many wonder if canceling the student loan would be part of Biden’s possible package, given that Biden adopted that of Senator Elizabeth Warren plan to offer $ 10,000 in student debt relief for every student loan borrower for coronavirus stimulation and relief.
Student loan payments held by the federal government have been suspended until the end of the year, but many borrowers are still hoping for further relief. However, based on the cost of canceling student debt, Biden is unlikely to include it in a package as small as a trillion dollars. Cancellation of $ 10,000 for all student loan borrowers costs almost $ 400 billionn – just another round of stimulus checks for all Americans.
Biden’s “Rebuild better“ the plan includes extend the $ 600 weekly unemployment benefit and more state aid to ensure educators and school support staff are not made redundant. If Biden’s goal is to help people get back to work or keep improved unemployment benefits, he’s unlikely to want to spend 40% of his first bill on something that would only benefit 15. % Population.
However, Biden could extend the repayment and interest break because it costs a lot less than outright debt forgiveness. This would allow Biden to provide other things like stimulus checks, unemployment benefits, and perhaps more aid from states and local governments, while also providing relief to those in need. student loan borrowers.
If Biden is elected, he can spend part of the transition period lobbying lawmakers for the first stimulus package so that it can be passed right after he is sworn in. Adopting a stimulus package this early could provide a down payment for his “Build Back Better” plan that would provide even more stimulus if passed.