Rep. Alexandria Ocasio-Cortez is telling close associates that she will run for United States Senate in the Democratic Party Primary against Minority Leader Charles Schumer — if he settles for anything less than full student loan forgiveness during the next Congress. Some Congressional leaders close to Speaker Nancy Pelosi have called for student loan forgiveness in the amount of $50,000 per borrower, but sources close to President-elect Joe Biden suggest that he only supports student loan forgiveness in the amount of $10,000 per borrower.
But neither proposal satisfies Ocasio-Cortez and her allies in the House of Representatives, who continue to demand the forgiveness of all $1.7 trillion in outstanding federal student loan debt — and expungement of all defaults from student borrowers’ credit records. In addition to loan forgiveness, progressives want to repeal a Bush-era law that prohibits borrowers from defaulting on student debt in the event they are unable to find work upon graduating.
“Borrowers should be entitled to default on student loan debt,” a source familiar with her thinking tells The Chronicle. “The federal government is allowing an industry to victimize 18-year-old borrows who don’t understand what they are or are not buying with regard to one’s education. Before they know it, they’ve paid $200,000 for a worthless education and social conditioning that damages them for years and makes it more difficult for them to find employment.”