This story is evolving.
President Joe Biden says he won’t forgive $ 50,000 student loans…
Here’s what you need to know.
On the CNN Tonight at City Hall in Milwaukee, Wisconsin, one of those in attendance said there should be $ 50,000 student loan debt cancellation for borrowers, not $ 10,000 in student loans, as Biden suggested. When a member of the audience asked the president what he would do to cancel the $ 50,000 student loans, Biden replied, “I won’t let that happen.”
Biden’s position today is clear: the president will not act unilaterally to write off student loan arrears. Biden’s direct response – and the rejection of a Democratic congressional proposal to cancel up to $ 50,000 student loan arrears for borrowers – comes as no surprise. For several months, Biden was consistent in his position that he wants Congress to abolish student loans immediately… Biden believes that Congress, not the president through the executive branch, is the arm of government that controls federal spending, including any plans to abolish student loans.
“I don’t think I have the authority to make this happen,” Biden said.
Cancellation of student loan
What does this mean for student loan cancellation? Senate Majority Leader Chuck Schumer (New York State) and Senator Elizabeth Warren (Massachusetts) want Biden to cancel student loans up to $ 50,000 by decree… They believe that the Higher Education Act of 1965 gives the United States Secretary of Education legal authority cancel student loans… They refer to Section 432 (a) of the Higher Education Act, which empowers the US Secretary of Education to “alter, compromise, waive or waive any rights, titles, claims, liens or claims, regardless of acquisition, including any capital. or any right to redemption. ” Based on this provision, they argue that it is undeniable that the President (through the Minister of Education) can cancel student loans for all student loan borrowers…
Democrats in Congress campaigned to pressure the president to cancel student loans through the order of the executive branch. Schumer, Warren, Rep. Alexandria Ocasio-Cortez and others have publicly stated that Biden has the power to cancel student loan debt, while Schumer said Biden can do it “with a flick of the pen.” The White House says Biden supports student loan cancellation, and that Biden will consider a student loan forgiveness through enforcement action if he has legal authority.
However, Biden, Schumer, and Warren want their student loan canceled. However, they differ in detail. For example, in essence, Schumer and Warren want to write off even more outstanding student loans. From a procedural standpoint, they want Biden, not Congress, to abolish student loans. This is a daunting task given the estimated $ 650 billion price tag. Traditionally, Congress has passed federal dollar spending legislation, especially at this rate. Although the US Secretary of Education has the power to cancel student loan arrears due to fraud, total or permanent disability, and other circumstances, it has not been verified in the courts whether the Secretary of Education has unilateral authority to simply cancel a student loan without further congressional approval. large debt.
Will you receive a student loan cancellation?
Increasingly, it is becoming clear that Biden will not cancel student loans on his own. This includes canceling a $ 50,000 student loan or a $ 10,000 student loan. Despite continued public pressure, Biden reaffirmed his stance tonight on the cancellation of the student loan. This means that if Democrats in Congress want student loan revocation, they may have to pass legislation. To be clear, student loan abolition is not universally supported by Congress. Republicans will not support the abolition of the student loan. In addition, it is unclear if Democrats have enough votes to pass the student loan bill with her pardon. Perhaps that’s why the Democrats hoped that Biden would cancel his student loan debt. Without a clear path forward, there is no guarantee that Congress will be able to cancel $ 10,000 student loans or any student loan arrears, for that matter. Don’t just rely on canceling your student loan. Make sure you have a student loan game plan. Get started with these three options, all of which are free: