No, Forgiving Student Debt Won’t Help Americans Cope With Coronavirus – Forbes
A stimulus bill to alleviate economic upheaval from the coronavirus pandemic failed in the Senate on Sunday after Democrats blocked it. Democrats’ objections were many, but among them was the perception that the bill doesn’t do enough for student loan borrowers. The alternative bill House Speaker Nancy Pelosi unveiled on Monday would have taxpayers cancel $10,000 in loans for every borrower, a proposal also endorsed by Senate Minority Leader Chuck Schumer and likely presidential nominee Joe Biden.
The failed stimulus bill favored by Senate Republicans would pause student loan payments for six months, and interest would not accrue during this time. Democrats are on board with this policy, but demand at least $10,000 per borrower in loan forgiveness as well. As a policy response to the coronavirus pandemic, a moratorium on payments makes sense. Outright loan forgiveness does not.
The problem the pandemic presents to some student loan borrowers is an immediate cash crunch. Workers faced with reduced hours or even layoffs need to relieve financial pressure right now. Taking student loan payments off the plate for six months is one way to do that.