The Confirmation: No Executive Plan to Cancel Student Loans
President Biden was adamant about relieving $50,000 of student loan debt for undergraduate and graduate students. However, he quickly changed the maximum amount he will approve to $10,000. In addition, he prefers for Congress to approve the legislation needed to roll out the plan.
“President Biden is awaiting reports from the US Justice Department and the US Department of Education to evaluate his authority to forgive student loan debt through executive order,” Kantrowitz explains.”Once he receives the report, which is expected to state that he doesn’t have the legal authority, the final decision will be in the hands of Congress.”
Student debt forgiveness has not been present in Biden’s proposed stimulus packages and his infrastructure package. Moreover, Forbes contributor Zack Friedman argues that “the number one reason Biden is unlikely to cancel student loans is simple. If he wanted to, he would have done it already.”
Experts Hope for Student Loan Forgiveness in The Future
Persis Yu, from The National Consumer Law Center’s Student Loan Borrower Assistance Project, is optimistic. Yu believes that Biden’s memo will confirm the president’s power to forgive student loans through executive action.
“Student loan borrowers are eager to see President Biden fulfill his campaign promise of widespread debt cancellation, especially as the payment suspension is approaching its end on September 30,” she explains. “Biden is currently reviewing the legality of student debt cancellation, and we are confident that this review will confirm what we believe: that the President already has the authority to cancel student debt on a large scale with a simple action.”
Biden Supported Student Loan Relief
People are critical of his limited action as president. Yet Biden used his executive authority to pause student loan payments during the year-long pandemic.