Group of Student Loan Borrowers Refuse to Pay Debt, Demanding Biden Forgive Their Loans

This sounds like a guy holding a gun to his own head, calling for police to give in to his demand or else he’ll shoot.

The Biden Jubilee 100 is a group of 100 student loan borrowers who have stopped paying their debt. The Debt Collective, which calls itself “a union for debtors,” has organized the strike, hoping to pressure President Joe Biden to cancel the country’s entire outstanding student loan balance of $1.7 trillion.

Thomas Gokey, co-founder of The Debt Collective, said:

“We’re going to win what we organize for.”

On the campaign trail, Biden said he supported $10,000 in student loan forgiveness, but he is under mounting pressure from members of his own party, advocates and borrowers to go further by canceling $50,000 per person and to do so through executive action.

Although Biden in the past has expressed hesitation about canceling student debt without Congress, White House press secretary Jen Psaki suggested this month that the administration hadn’t ruled out the possibility. On his first day in office, Biden extended a pause on payments for federal student loan borrowers that has been in effect since March until this coming September.

Critics of student loan forgiveness argue that it wouldn’t significantly stimulate the economy since college graduates tend to be higher earners who would likely redirect their monthly payments to savings rather than additional spending. Others say it would be unfair to those who’ve already paid off their student debt or never took out loans, and would send the message that it’s OK for people to ditch their debts.

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Comments (4)

  1. Deanna Davis

    If the government have allowed the loans to be sold over and over, accumulating more and more interest, this problem wouldn’t even exist. Me LOAN (<$25,000) would have been posted if decades ago, but thanks to interest, I paid for years and then applied for forgiveness on the remaining $105,000 when I became disabled.

  2. KE Kelton

    It was their decision to incur the debt…it is their responsibility to pay it off…we pay our debts, they must pay theirs. Interest rates can be reduced, but they must repay the loans they took out.

  3. Malou

    No! I did not co-sign with them when they apply for student loans. They know how to borrow & to repay. It has nothing to do to stimulate the economy. It is unfair for students & parents who have paid loans because they have to. It should be the same for all student loans. They all read the contract before signing it!

    • Amy Angel

      This is a bad time for many. I understand that loans were taken out and yes should be paid back. Unfortunately my daughter was paying 750.00 a month because it was based on income and what’s sad is only approximately 50.00 went towards principal. Since then she lost her job and had to apply for a reduction. For some that is a house payment. The government can send millions to foreign countries then they can help these ones who owe so much in loans. Maybe putting American people first would be a good start instead of paying for so much of nothing to foreign countries. How about letting them all have loans combined and paid back at a 2% interest rate so they can pay them off faster. Maybe forgive the first 10,000.00 and make it easier for them. Covid has been a set back for so many.

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