Bharat Ramamurti, a member of the COVID-19 Congressional Oversight Commission, called for a cancellation of student loan debt via executive order, The Hindustan Times reports.
According to the Hindustan Times, a recent report found that student debt is a racial issue that disproportionately impacts students of color. Canceling student loan debts would actually have a positive effect on the economy, Ramamurti, Sen. Elizabeth Warren’s former economic advisor, said.
“Student debt loans are part of the reason we’re seeing declining home ownership and small business formation rates,” Ramamurti said via Twitter. “Canceling the debt will mean more jobs and growth.”
“The latest data and research also show that broad debt cancellation will help narrow the racial wealth gap,” Ramamurti added, citing a Roosevelt Institute study.
High approval rates for debt cancellations of up to $10,000 are highest among those making under $50k/year, Ramamurti said. Supporters go beyond the college-educated population, Ramamurti added, pointing out support among parents paying their children’s tuition or those who didn’t complete a degree but still accumulated debt.
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The attorney’s tweets gained widespread attention, leaving responders to debate over the issue.
“Genuine question: Wouldn’t this need to be paired with massive restructuring of current and future higher ed payments? Otherwise, this is just a one-time thing and we’ll be back in the same boat soon,” Twitter user @silverlamp1 said.
“I don’t condone letting people off of loans they decided to take.” Twitter user @tropmonky said. “The more broader issue is the current sh*tshow known as the U.S. education system.”
In an opinion piece, Inside Higher Ed writer and teacher John Warner said debt cancellation is ‘in the power of the president to do it quickly.’
“Some worry that it’s unfair to those who have managed to pay off their loan debt,” Warner said. “Accepting this definition of unfair suggests we should never do anything helpful as long as others have been harmed in the past. That coronavirus vaccine we’re all so eager to see arrive? Unfair to people who have already died.”
“We the people struck a bargain: if you work hard and get an education, you will be paid back in increased economic prosperity,” Warner continued, Inside Higher Ed reports. “Rather than being a ladder up, for many it has become an anchor holding them down.”
Ramamurti emphasized that 45 million people have over $1 trillion in student loan debt with the typical monthly payment by student loan borrowers ranging between $200 and $299 per month. Cancelling debt would be like “sending those people a check every month,” Ramamurti said.
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