This marks the third round of student debt write-offs issued by the Biden camp since the move to 1600 Pennsylvania Avenue. previous rounds were intended for borrowers who attended schools such as the ITT and Corinthian colleges, which the Department of Education identified as using deceptive or illegal methods.
Nonetheless, the announcements show that Biden-appointed Education Minister Miguel Cardona is willing to go further down the path of debt cancellation than previous heads of departments under the Obama and Trump administrations.
It is unclear what will happen next on the student loan forgiveness front. Bye Biden publicly opposed the forgiveness of a $ 50,000 debt to the borrower, he showed openness to something in the ball park for $ 10,000… However, the president did not support attempts to do so on the basis of the decree. The chances of an executive order diminished further last month when House Speaker Nancy Pelosi told reporters that Biden had no legal authority to do so.
“People think that the President of the United States has the power to forgive debts, but he does not,” Pelosi told reporters in July… “It must be an act of Congress.”
Will Pelosi act accordingly? It is not clear. In their first seven months in office, Democratic leaders in Congress have yet to announce plans to vote on the student loan forgiveness bill.