The Congressional Black Caucus is calling on President Joe Biden to use his government powers to enact “broad-based university student bank loan credit card debt cancellation,” saying undertaking so would enable cut down the racial wealth hole.
In a statement Friday, the group of Black lawmakers explained the $1.7 trillion scholar financial loan financial debt disaster as “a racial and financial justice concern disproportionately impacting Black communities.”
“Canceling student bank loan financial debt is a person of the most impactful techniques to deal with the ongoing financial and racial inequities plaguing our nation,” the CBC wrote.
“Nothing is off the table, apart from inaction,” stated the lawmakers, who also asked to meet with Biden to talk about the matter.
The CBC did not include things like a precise sum of university student debt that they proposed to be canceled.
Earlier this calendar year, dozens of Democratic lawmakers, led by Massachusetts Democrats Rep. Ayanna Pressley and Sen. Elizabeth Warren, urged the president to cancel $50,000 in scholar debt for each borrower.
Biden previously indicated he is “unlikely” to remove that a lot financial debt for every person, but has expressed help for forgiving $10,000 of credit card debt per individual.
The administration has mentioned the president will determine whether to cancel any amount of money of college student personal debt just before payments resume in August. (Federal university student bank loan payments ended up paused amid the COVID-19 pandemic, and Biden has consistently extended this pause.)
Widespread personal loan forgiveness would make a important dent in the racial wealth hole, as Black undergraduates are more possible than any other racial team to have to borrow dollars to pay back for higher education, and Black pupils graduate with the finest student bank loan credit card debt of any team.
A Federal Reserve report in 2020 appeared at American borrowers underneath age 40 who have college student mortgage credit card debt, and identified that 26% of Black and 19% of Latinx borrowers had fallen powering on their bank loan payments, as opposed to just 7% of white borrowers.