Democrats are pressuring President Biden to act on student debt forgiveness once again, putting further pressure on the White House to do so even as it battles to unite a fractured party behind the president's agenda.
Democratic Leaders Urge Biden To Act on Student Forgiveness Loan
In a recently published article in The Hill, Senate Majority Leader Charles Schumer (D-N.Y.) tweeted on Thursday that it would be a great day for Pres. Joe Biden and Vice-President Harris to cancel student debt. It has been known that Schumer always hit the administration to act on it through his social media account.
Additionally, the head of the Congressional Progressive Caucus, Rep. Pramila Jayapal, also tweeted on Thursday that student debt reduction is beneficial for individuals and the economy. President Biden has the ability and responsibility to relieve 43 million Americans of their student loan burden.
Biden is expected to cancel up to $50,000 in federally held college debt per borrower, according to progressives. This would wipe away all federal student debt for approximately 80 percent of the roughly 44 million Americans who owe the federal government more than $1.5 trillion in total, according to a published article in NBC News.
Biden's Authority To Cancel Student Loan Remains Questionable
Advocates believe that the Higher Education Act of 1965, which granted the Education Secretary power to back student loans, gives Biden the ability to cancel student loan debt. According to experts, any presidential action may face litigation or legal scrutiny, putting the fate of a forgiveness order in the hands of the Supreme Court.
On January 8, Biden's transition team reiterated his support for Congressional action to provide $10,000 in forgiveness to each federal student loan borrower. As a result, executive action by the President-elect seems to be a long shot, according to a published article in Nerd Wallet.
However, House Speaker Nancy Pelosi (D-Calif.) has voiced reservations about Biden's ability to eliminate student debt on his own, as well as the political wisdom of doing so. She insisted that there is a need for Congressional action before Student Loan Forgiveness can happen.
Department of Education Temporarily Allowed Student Borrowers To Claim Credit on All Federal Loan
In a published article in USA Today, The Department of Education announced recently that student borrowers would be able to claim credit for all federal loan and repayment programs toward forgiveness for a limited time, claiming that the move will "restore the promise" of the Public Service Loan Forgiveness program.
The program cancels student debts for those who have worked in eligible public service for ten years and paid off federal loans for ten years, but it excludes hundreds of thousands of borrowers who qualified under past administrations.
Meanwhile, Richard Cordray, the former head of the Consumer Financial Protection Bureau (CFPB), has been named to run the Office of Federal Student Aid (FSA), which supervises businesses hired to collect student loan payments. Cordray recently announced the establishment of a new enforcement unit inside the FSA, patterned after the Consumer Financial Protection Bureau's strong approach to student loan servicers that have allegedly harmed borrowers.
