House Speaker Nancy Pelosi told reporters that President Biden does not have the power to cancel student loan debt in explosive remarks.
Pelosi Released a Statement About Biden's Plan To Cancel Student Loans
During a news conference on Wednesday, Pelosi claimed that under an executive order, Biden may only postpone or halt student loan debt, not erase it altogether. She said, "He can postpone, he can delay, but he does not have that power. That would best be an act of Congress," according to a published article in The Hill.
Pelosi's remarks come a day after Schumer, Warren, and Pressley urged Biden to prolong the moratorium on student loan payments and move ahead with debt forgiveness. All three have been urging Biden to seek debt relief since soon after the November election, arguing on Tuesday that the economy is still recovering from the epidemic and that he could not afford to wait any longer.
Debt forgiveness supporters believe that a comprehensive wipe-out plan would make a major step toward reducing inequality and the racial wealth gap, since over 43 million Americans owe the federal government more than $1.6 trillion in student loans, according to a published article in Forbes.
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Biden Seeks for His Legal Authority
Pres. Joe Biden has requested the U.S. Department of Justice and the U.S. Department of Education over his legal power to cancel student debt be reviewed. The decision of those agencies have not yet been made public. Meanwhile, higher education expert Mark Kantrowitz said, "They are likely to reach the same conclusion as the one reached by Speaker Pelosi," according to a published article in CNBC News.
Moreover, Pelosi also questioned whether canceling student loans was really practical, claiming that people may not want their tax money used to cancel someone else's debt, implying that she may not support mass student loan forgiveness in a Congressional law if Biden does not use his executive power.
However, Democrats may find it difficult to pass legislation canceling student debts due to their razor-thin majority, but they may put such a measure in the budget reconciliation process in the fall. That path would not need Republican backing.
Schumer Believes Biden Can Forgive Student Loans
According to Schumer and other proponents of debt forgiveness, Biden may forgive student loans using the same legal loophole that former President Trump used to postpone loan payments and interest accrual in March 2020 at the start of the coronavirus epidemic.
However, the president cannot cancel student debt without an act of Congress, according to Trump-appointed Justice Department officials, but Biden appointees may disagree. Additionally, the White House indicated it was looking into Biden's legal possibilities for student loan forgiveness, but the president said that any final debt forgiveness scheme would not approach the $50,000 level demanded by progressives, according to a report published in Yahoo News.
Schumer also said that to force borrowers to return their loans today would be unjust, harsh, and, in many cases, cruel. He asserted that COVID-19 knocked people off of their stride and there is a need to give them a chance to get back on their feet.
