The CARES Act, Public Law No: 116-136 (03/27/2020) aka the Coronavirus Aid, Relief, and Economic Security Act allows student loan borrowers to defer payments without accruing interest from September 2020 to October of 2021. The balances, or the total loan debt, will not increase in that time frame. As of the fourth quarter of 2020, none of more than half of the federal student loans totaling $1.6 trillion will be required to be paid back. Twenty-two million citizens who borrowed money from the federal government for college won’t be making an average payment of $400 a month .The interest that has been cancelled by the CARES Act totals $5 billion per month, with a total projected to be $90 billion. The taxpayers are footing that bill, all while the debt of the United States climbs to record highs.
In the meantime, Senator Elizabeth Warren is asking President Biden to cancel $50,000 per student of their loan debts. The request is for President Biden to just cancel the debts, by presidential order. The prevalence of our “cancel culture” means whatever anyone wants is now just a presidential declaration away. As former White House Chief of Staff Rahm Emmanuel said, “never let a serious crisis go to waste.”Keep Reading