President Joe Biden is exploring the presidential power to forgive student loans-but has not yet decided how to best address the financial burden of student borrowers. White House Chief of Staff Ron Klain (Ron Klain) said on Thursday that the president has asked his education secretary, Miguel Cardona, to prepare a memorandum of legal authorization for the president to cancel student debts.
Biden had previously hinted that he did not have the right to cancel the $50,000 student loan debt, and he said he would not “do this” because certain members of his party and progressives called for it in February. Instead, he expressed his intention to cancel up to $1
White House Chief of Staff Ron Klain (Ron Klain) said in response to a question about this decision: “He did not make a decision on these two methods.” Klein pointed out that Biden has not yet received a memo to make a decision. .
“Hopefully, we will see this in the next few weeks, and then he will study the legal authorization.” Klein said.
According to data from the Federal Reserve, student loan debt has exceeded $1.7 trillion. According to the Department of Education, more than 42 million Americans (approximately one in eight) have student loans. Now, this is the second largest debt of American households, second only to mortgages.
On Thursday, Massachusetts Democratic Senator Elizabeth Warren and Senate Majority Leader Chuck Schumer and others jointly announced a resolution to cancel the $50,000 debt and continue to impose on Biden. Pressure to end the “nightmare”.
She said at a press conference: “The cancellation of the $50,000 student loan debt is a racial justice issue. This is an economic justice issue. This is a generational justice issue.” She will hold a hearing on student loan debt later this month. meeting.
A report released by the JP Morgan Chase Institute last month found that the cancellation of $50,000 in student loan debt and certain income restrictions would reduce student loan debt by $786 billion. The company also found that cancellation of $50,000 in student debt can be used for low-income borrowers, black and Latino borrowers, and borrowers facing debt traps or long-term repayments (compared to other smaller or more targeted options). People offer more forgiveness.
Union calls for action on public service loan forgiveness
The Biden administration also faces union pressure on student loan debt. On Thursday, 15 unions representing public officials wrote to Cardona in a letter urging him to take immediate action to cancel student loan debts for all public officials who have served for ten years or more.
The union, which represents more than 10 million public service workers (including teachers and police officers), specifically called on Cardona to review the public service loan forgiveness plan for 90 days and then cancel the debt.
The letter pointed out that since public service workers were first eligible for debt relief under the plan in 2017, 98% of applicants have been rejected. They blamed a combination of factors, including narrow regulations, mismanagement by the previous government, and “widespread abuse” in the student loan industry.
The union said: “This effort is the most basic requirement for justice to public service workers who have suffered from the devastating student loan system.”