Democratic New York State Rep. Alexandria Ocasio-Cortez criticized the Biden administration’s new student loan debt plan in an interview Sunday.
Ocasio-Cortez challenged the Biden administration’s plan not to report borrowers to credit agencies, Said Debt interest must be suspended during the 12-month “increase” period. (Related: Supreme Court Cancels Biden’s Student Loan Donation)
It is very important to note that this SCOTUS ruling does not preclude Biden’s ability to seek student loan forgiveness.
The Biden administration can use the HEA (the Higher Education Act) (our position from the beginning) to continue loan forgiveness before payments resume. You should do so as soon as possible. https://t.co/inV3yWsDwB
— Alexandria Ocasio-Cortez (@AOC) June 30, 2023
“I would like to see interest payments stopped at this time, especially during the 12-month ramp-up period,” Ocasio-Cortez told CNN’s Dana Bash. “There are millions of people in this country with less than $10,000 or $20,000 in student loan debt, as outlined in the plan.”
“People shouldn’t have to pay interest during this 12-month spread,” added Ocasio-Cortez. “Therefore, I strongly urge the government to consider suspending interest payments. Of course, we believe in pursuing student loan cancellations and acting as soon as possible before that 12-month period. increase.”
Ocasio-Cortez encouraged Biden to use the Higher Education Act (HEA) to avoid a Supreme Court ruling. The HEA gives the secretary of education discretionary authority to forgive student loans “under certain circumstances.” according to CBS news.
“Myself and other members of the Hispanic Caucus recently met with the White House regarding this plan, as well as many other supporters in the field,” she said.
“And we truly believe that the president, the Congress, has given the president this power. The Supreme Court goes far beyond that power. I believe we also need to talk about judicial review,” she added.
On Friday, the Biden administration’s plan to cancel $400 billion in student loans was overturned by the Supreme Court, forcing the president to develop a new strategy.
Biden offered a 12-month “on-ramp” program in which the Department of Education would not report borrowers to credit agencies. The president said the Biden administration hopes to prevent debt defaults and credit score declines while borrowers prepare to resume payments. Frida said.Hi.
