WASHINGTON, DC – APRIL 2: United States President Joe Biden speaks on the state’s March employment report … [+]
Getty Images
Last week, the Biden government announced that the President has tasked Education Minister Miguel Cardona with researching and drafting a formal legal opinion outlining potential judicial authorities that could provide the basis for widespread student loan forgiveness through action to be implemented by the executive. The Department of Education will coordinate efforts with the Biden Department of Justice, which is also reviewing possible legal avenues for student loan issuance.
Student loan borrowers, labor unions, consumer groups and Democrats in Congress have been pushing Biden to use executive power to provide student loans since last year. But Biden has been reluctant to do so, and has voiced his skepticism that he has the authority to do what activists ask him to do.
As the Biden administration continues its legal review of student loan remission, there are four key questions that ultimately need to be answered.
Can Biden make student loans through executive action?
While Biden has expressed support for student loan forgiveness in general, he has resisted taking executive action to cancel student debt.
Many student loan legal experts have argued that Biden has the authority to enact widespread executive student loan forgiveness. Proponents have pointed to a provision in the Higher Education Act that gives the President extensive powers, through the Minister of Education, to “modify, compromise, enact or release student loans.” Several consumer advocacy groups and members of Congress (including Senator Elizabeth Warren) have argued that using this executive power to pay off student loan debts is legal. Other proponents have pointed to the HEROES Act, which could give the president emergency powers to act in the face of the ongoing pandemic; This was the basis of President Trump’s previous executive move to suspend interest and payments on government-held federal student loans.
However, the Department of Education attorneys under former Secretary DeVos came to the opposite conclusion, stating that widespread student loan allocation would go well beyond what Congress originally intended when it passed the Higher Education Act and HEROES Act .
If Biden makes student loans, who would be eligible?
Biden has never spoken out publicly in favor of scrapping all $ 1.7 trillion in outstanding student loan debt. If the administration determines that the president can make student loans through executive action, would he suggest restrictions or eligibility criteria?
There are a number of ways that student loan issuance can be restricted. The most obvious mechanism would be the amount of student loan debt that would be canceled. Student loan borrower advocates have argued in favor of canceling student loans of $ 50,000 or more. But Biden has consistently advocated a smaller, “targeted” amount of student loan issuance – specifically $ 10,000. In December, Biden said it was “unlikely” to waive or waive $ 50,000 in student loans.
Eligibility could also be limited to borrowers based on income, similar to the eligibility check. Senate Majority Leader Chuck Schumer (D-NY) had previously suggested that student loan issuance should be restricted to borrowers earning less than $ 150,000 a year.
The type of student loan in question could also be relevant. The exemption of student loans through executive measures may only have to be limited to federal student loans, for example because the University Act does not cover private student loans.
What if Biden finds that executive action cannot cancel the students’ debts?
Biden has claimed that his preferred way of making student loan facilitation easier would be for Congress to pass a student loan forgiveness bill. In view of the tight democratic majorities in the House of Representatives and the Senate, this path may be difficult at the moment, which leaves the party leaders with little room for error. Without Republican support, GOP senators would likely thwart such laws in the Senate. Additionally, the current management focus is on Biden’s extensive infrastructure package, which may take months to complete. For these reasons, student loan borrower advocates claim that Executive Acton would be the best way to get rid of student loan issuance.
However, if the Biden administration determines that the issuing of student loans is unsustainable through action by the executive, all is not lost. The pressure on Congress would increase as it passed laws.
When will we have an answer to Biden’s student loan forgiveness review?
There is no specific timeline for the legal review of student loan issuance by the Biden administration. The White House chief of staff suggested last week that the review could take weeks. However, it can be a surefire thing that the administration would get a response before September 30th – when the current extended moratorium on most federal student loan payments and interest expires.
further reading
Biden is rolling out additional student loan relief this week – but borrowers are requesting a full cancellation
72,000 Borrowers Receive $ 1 Billion In Student Loans – Will You Qualify?
Is the $ 10,000 student loan forgiveness next after the Biden government canceled $ 1 billion?
Congress passes Biden’s Stimulus Bill: 6 Takeaways for Student Student Borrowers
Stimulus Bill has that hidden student loan tax break
Congress Makes Big Changes To Income-Based Repayment: What Student Loan Borrowers Should Know
Senate Passes Student Loan Tax Break Stimulus Bill – Will It “Pave the Way” to Student Debt Relief?
Here’s everyone who wants Biden to cancel student loan debt (it’s a big list)
Whether Biden will cancel the students’ debts depends on these 3 things
Could these student borrowers be excluded from Biden’s forgiveness?
Can Biden cancel private student loans? 3 options
source https://collegeeducationnewsllc.com/4-key-questions-about-bidens-student-loan-forgiveness-review/
No comments:
Post a Comment