Confused by what is going on with the student loan cancellation debate? Yahoo News producer Emmi Vélez explains.
EMMI VELEZ: If you’re in college or recently graduated, there’s a good chance you or someone you know has a lot of student debt. And believe me, that totally sucks. Since President Biden took office, calls for student debt cancellation have grown even louder, but he’s a little hesitant to write off student debt.
Democratic lawmakers have introduced a proposal to write off up to $ 50,000 in student debt. They say it’s good for American businesses and will help right financial injustices against minorities. But earlier this month, Biden publicly opposed pressure from Congressional Democrats to use his executive powers to write off $ 50,000 in student loan debt, saying he would, I quote, “not do that it happens “.
But the cancellation of the student loan is still possible. At the same event, Biden expressed support for eliminating $ 10,000 in student loan debt from borrowers. He did not close the door on forgiveness for student loans over $ 10,000 or reject the idea of using the executive branch to write off student debt.
Will Biden Really Write Off Your Student Loan Debt? Well, it depends on three things. First, is Congress ready to take the lead? Biden prefers the student loan cancellation to be passed by Congress because it will have a stronger legal basis than if it did so through executive action alone.
Second, is it even legal to use a decree to cancel student debt? If Congress decides not to do so, supporters say the Higher Education Act gives the president the power to release borrowers from their student loans. But others argue that canceling student loan debt is beyond the scope of the authority Congress bestowed on the executive when it first passed the Higher Education Act.
Finally, will the political pressure be enough to make something really happen? The greatest area of uncertainty right now is exactly the political pressure that will be exerted on the Biden administration to cancel the debt, which could have a serious impact on policy decisions. So if you are hoping the government will help you with your student loans, it may take a while, but don’t give up just yet.