COLUMBUS, Ohio – President Joe Biden’s administration has chosen Richard Cordray to oversee government student loans.
Cordray, who previously headed the Consumer Financial Protection Bureau, will serve as the chief operating officer of Federal Student Aid in a key administrative role a portfolio of $ 1.5 trillion as progressives Urge Biden to cancel student loan debt.
Massachusetts Senator Elizabeth Warren, an ally of Cordray, praised the pickaxe. say on twitter: “I am very pleased that he is protecting student borrowers and bringing much-needed accountability to the federal student loan program.”
United States Secretary of Education Miguel Cardona said Cordray has a strong track record as an official: “I am confident that Federal Student Aid, under his leadership, will provide the service our students, families and schools deserve.”
Cordray is known in Ohio as the attorney general and treasurer of the state. In 2018, he ran against then Ohio Attorney General Mike DeWine. ultimately losing the governor’s race.
Cordray recently published a book about his time at the CFPB, entitled “Watchdog: How Protecting Consumers Can Save Our Families, Our Economy, and Our Democracy”.
Biden’s Student Loan Debt Plan
Although Biden was reluctant to bypass Congress in canceling student loan debt, he has said since the days of his campaign that the government must help those with “debilitating” student debt.
“I understand the effects of debt,” he said in a CNN city hall in February.
Under Biden, the Department of Education canceled student debt for borrowers with disabilities. And the federal government suspended payments for federal student loans until September 30th during the COVID-19 economic crisis.
Economists, social justice activists and democratic leaders in Congress are pushing Biden to do so Forgive the federal student loan debt have argued that this would help address centuries of racist economic policies, including employment and housing discrimination, which continue to make it difficult for black Americans to achieve the same degree of wealth as white Americans.
While approximately 44 million Americans owe a total of $ 1.7 trillion in student debt, black Americans have, on average, nearly twice as much debt as white Americans and more than Asians and Latinos. Black borrowers who earn less are also less likely to pay back their debts and are most likely to be in arrears with their payments, according to the Federal Reserve.
Biden officials have also supported cancellation of up to $ 10,000 in federal student loan debt per person, which is below the $ 50,000 that progressive lawmakers have requested.
Contributors: Cristina Silva, Jeanine Santucci
This article originally appeared on the Cincinnati Enquirer: Richard Cordray was selected to oversee the federal student loan program