UPDATED 9:01 AM PT – Tuesday, March 9, 2021
Senate Majority Leader Chuck Schumer (D-N.Y.) has called for a taxpayer-funded bailout for all student debts up to $50,000 . In a tweet Monday, the New York Democrat pushed Joe Biden to issue an executive order to cancel student debt.
More than 43 million Americans are crushed under more than $1.5 trillion in federal student loan debt.
A crisis of this magnitude requires bold action.
— Chuck Schumer (@SenSchumer) March 9, 2021
Schumer implied millions of Americans who chose to rack up $1.5 trillion in federal student loans should not have to completely repay their debts. However, many Republicans believe they should be held accountable for the sake of contractual agreements.
“Forgiving $50,000 in student loans would also set a terrible precedent on the sanctity of contracts,” stated Sen. John Thune (R-S.D.). “While it may sometimes be ill-advised, students freely enter into the agreements that they make when they take out a loan. Should we really be teaching that agreements and contracts mean nothing?”
The Republican senator added, loan forgiveness implies the debts would disappear when in reality it would be paid by taxpayers.