AOC: Student Loan Forgiveness is the Best thing to Do, But I Don’t Know Why Biden is Yet to Implement It
Yahoo Finance interviewed Alexandria Ocasio-Cortez (AOC) this week to discuss the current White House administration, as well as the potential consequences of resuming payments in May.
In December, the Biden-Harris administration announced that the pause on student loans would be extended until May 1, 2022.
“I cannot understate the danger and the risk—economically, politically, and just where we are right now as a country—of allowing the moratorium on student loan payments to lapse in May,” AOC said, as reported by Complex.
“If we just allow a full continuation of student loan payments, we are talking about a catastrophic development for millions.”
The progressive Democrat went on to note that millions of consumers were already in debt prior to the pandemic.
According to her, the “delicate point” the United States finds itself in at the moment may make that situation worse.
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“It could throw out of balance what is already a very fragile recovery,” she said around the 1:03 mark in the video below. “Not only that, but forgiveness is the just thing to do. It’s the right thing to do. Why the president hasn’t done it yet, I’m not sure. But I do think this is an issue of increasing urgency. He has already indicated an openness to it and he has actually already used his authority to forgive student loan debt in certain small, very narrow cases.”
According to AOC, the often-repeated argument that the POTUS would not be able to implement blanket forgiveness is a “legitimate” stance, since he’s used the same authority for secret payments in the past.
According to AOC, some people are led to believe that only “fancy” schools are “extremely expensive for students,” despite the fact that education debt is a widespread problem.
AOC pointed out that this argument is inaccurate because public college tuition has risen “dramatically far beyond the pace of inflation.”