Rep. Alexandria Ocasio-Cortez is warning against the anticipated reinstatement of student loan payments, citing the “extremely shaky recovery” the nation is suffering from the epidemic.
When speaking with Yahoo Finance this week, AOC brought up the current White House administration and offered a gloomy image of the probable consequences of restarting payments in May, according to the interview.
In December, the Biden-Harris administration announced that the student loan pause would be prolonged until May 1. As previously reported, the student loan pause would be extended until May 1 of this year.
Given our current economic, political, and national circumstances, it is impossible to overstate the danger and risk of letting the moratorium on student loan payments expire in May. “I cannot overstate the danger and risk,” AOC says at the beginning of the film below.
“If we just let the continuance of student loan payments in their entirety, we are talking about a potentially disastrous scenario for millions of people.”
As a result, the progressive Democrat pointed out that millions of debtors were already having difficulties making their payments before the epidemic. However, the country’s “vulnerable point” might exacerbate the current scenario further.
According to her, “it has the potential to throw out of balance what is already a very delicate recovery.” She says this about 1:03 in the video below. “Not only that but forgiving someone is the right thing to do in this situation. It’s the correct thing to do in this situation.
I’m not sure why the president hasn’t taken care of it yet. However, I believe that this is a problem that is becoming more urgent. He has previously shown an interest in doing so, and he has already used his power to cancel student loan debt in a limited number of quite specific circumstances.”
The Democratic presidential candidate was asked if the oft-repeated argument that President Donald Trump does not have the authority to enact some form of blanket forgiveness was a “legitimate” position. AOC responded that it is not and noted that “we’ve seen him use the same legal authority” to suspect payments in the past.
AOC highlighted that some people are under the impression that only “luxury” institutions are “very costly” for children. At the same time, she spoke about the misconceptions that often obfuscate the bigger problem of education debt.
AOC pointed out that this is incorrect since public college tuition has increased “dramatically well above the inflation rate” and has outpaced inflation.
More from AOC, including her thoughts on the “real moral hazard” posed by growing college costs, may be seen in the three-minute video embedded below. And for additional information on the present state of student loan debt, see our latest analysis, which can be found here.