President Joe Biden (Photo by Erin Scott-Pool / Getty Images)
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No, President Joe Biden is not actively considering canceling student loans of up to $ 50,000.
Here’s what you need to know.
Student Loans
Despite recent claims that Biden is actively considering canceling student loans of up to $ 50,000, let’s clarify what has been said and what has not:
1. The legal review of executive authority to terminate student loans differs from active consideration to terminate student loans of $ 50,000
In an in-depth interview with Politico, White House Chief of Staff Ron Klain said the president had asked U.S. Secretary of Education Miguel Cardona to conduct a legal review of the president’s authority to issue a comprehensive cancellation of student loans. Soliciting a legal review alone is not an active consideration of canceling up to $ 50,000 in student loans. Importantly, Klain made no reference to canceling the $ 50,000 student loan. Rather, the interviewer, Ryan Lizza, pointed out that some Democrats are calling for the president to cancel up to $ 50,000 in student loans by executive decision. That’s an important difference. The legal review appears to be about the president’s legal authority to cancel student loans on a large scale. The amount of student loan waivers is a political issue. This is another important distinction: the first question is legal authority and the second question is the amount of cancellation of the student loan.
On the question of legal authority, Biden – who has a law degree in Syracuse and served as a U.S. Senator from Delaware – doesn’t believe the president has the legal authority to enact comprehensive cancellation of student loans by ordinance. Biden believes that Congress is the appropriate legal department to pass laws on federal spending. Others disagree, relying on the Higher Education Act of 1965, which they believe already gives the President unilateral power to cancel any student loan amount regardless of the number of student borrowers. On the policy issue, even if Biden has the legal authority to cancel student loan debt, Biden does not publicly endorse canceling student loan debt of up to $ 50,000 for borrowers. It is unlikely that there will be any legal authority issue regarding the amount of student loan waivers between $ 10,000 and $ 50,000. The legal issue is whether a president (as part of the executive branch) can unilaterally terminate student loans on a broad basis without further approval from Congress.
2. Legal review of student loan cancellation no surprise
This legal review comes as no surprise and, at first glance, does not increase the likelihood that the student loan will be canceled. In February, Biden said he would seek a legal review to assess whether the president is enacting a far-reaching cancellation of the student loan through an ordinance. “[Biden] asked his education minister – who has only been in office for a few weeks – as soon as he took up his post to have his department draft a memo on the president’s legal authority, which we hope to see in the next few weeks, ”said Klain said.
3. Biden is considering terminating the student loan
It’s no secret that Biden supported student loan cancellation and urged Congress to immediately cancel student loans of $ 10,000. White House press secretary Jen Psaki confirmed Tuesday that Biden has not changed his position on student loan termination. Psaki also said Biden is considering his student loan options.
4. Biden does not support cancellation of the $ 50,000 student loan
Biden did not support cancellation of student loans up to $ 50,000 per borrower. This proposal comes from Senate Majority Leader Chuck Schumer (D-NY) and Senator Elizabeth Warren (D-MA). Biden said he thinks $ 10,000 is the appropriate amount to make student loans. Could Biden change his position? Sure, Biden could change his mind and cancel student loans by executive order for $ 10,000, $ 50,000, or some other amount. However, Biden has not publicly stated anything that would suggest that he is considering canceling the $ 50,000 student loan. To date, Biden has targeted student loan cancellation through a gradual approach to a select group of student loan borrowers, including over $ 2.3 billion in student loan cancellation. Biden canceled $ 1 billion in student loans for 72,000 student loan borrowers and an additional $ 1.3 billion in student loans for 41,000 borrowers with total and permanent disabilities.
Are your student loans canceled?
Are your student loans canceled? Klain said the president has not yet made a decision on terminating the student loan. Once Biden receives the student loan memo, “he will look at that legal authority,” Klain said, referring to Biden. “He will look at the related political issues and make a decision.” The U.S. Department of Education, which was headed by Betsy DeVos during the Trump administration, previously wrote a memo that the president had no legal power to cancel student loans on a broad basis through executive order. If Biden’s Department of Education determines that the President can cancel student loans by ordinance, there is no guarantee of how much student loan Biden will cancel. First, Biden would also need to consider how many student loan cancellations should be waived based on his political outlook. Second, a legal endorsement does not have the same weight as a court decision and it is possible that the legal issue will subsequently be examined in court. The other major avenue for comprehensive student loan cancellation is through Congress. Congress could pass student loan legislation, although at the moment Congress seems more focused on putting pressure on the president. In any case, find out all about the repayment of the student loan. Cancellation of the student loan is only part of the repayment of the student loan and there is no guarantee if or when it will come and how much. Here are some smart options to consider to save money:
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source https://collegeeducationnewsllc.com/no-biden-isnt-actively-considering-cancelling-50000-of-student-loans/
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