While Biden’s camp is clearly more aggressive about student loan cancellations than previous administrations, his claims are far from widespread student loan forgiveness. In fact, that’s not even 1% of the $ 1.7 trillion total student loan debt.
The question is, when – if ever – will Biden really give up the broad student loan forgiveness?
“I don’t expect anything to happen this year with regard to student loan write-offs,” says Robert Kelchen, professor of higher education at the University of Tennessee at Knoxville. Luck…
Why? Keelchen said it doesn’t look like the Democratic-controlled Congress is planning to host it this year. Even if they did, moderate Democrats and Republicans could make it difficult to get through the US Senate, where Democrats, thanks to Vice President Kamala Harris’ equality of votes, have only one vote over Republicans.
In addition, according to Kelchen, Biden does not foresee that Biden will forgive student loans based on the order. Back in March Biden’s Administration Announces It Will Conduct Research to see if the executive has the legal power to destroy it. White House chief of staff Ron Klein said they will publish the announcement by April. However, as of September 3, the study has yet to be published.
Even without research, the chances of an enforcement order appear slim. Speaker of the House of Representatives Nancy Pelosi told reporters in July that the White House did not have the authority to cancel borrowers’ student loans through a decree.
“The president can’t do this … it’s not even a discussion,” Pelosi said.
If Biden doesn’t do it with a stroke of the pen, then the only way out for him will be the adoption of Congress. Pelosi did not say when – or if – it would happen. There is pessimism among higher education insiders that this will be done.
“At this point, I think the chances of widespread forgiveness during Congress or even the first presidential administration are slim and diminishing,” says Carlo Salerno, vice president of research at the company. CampusLogic and for a long time worked as an economist with a higher education. “Worrying about who will win the most will almost certainly turn this into a guerrilla war that will undermine a separate bill, and the window for piling into some of these super-massive spending bills that can no longer be passed will probably also be closed.”