Can Joe Biden Really Write Off Student Loan Debt?
Here’s what you need to know.
The cancellation of student loans was a hot topic during the election campaign and in the halls of Congress. From Senator Bernie Sanders (I-VT) wanting to forgive all $ 1.6 trillion in student loan debt to Senator Elizabeth Warren (D-MA) offering to forgive 95% of Americans for student loans, presidential candidates have touted their plans for your student. the loans. In Congress, House Democrats have proposed canceling $ 10,000 in student loans for financially troubled borrowers, while senators have said $ 10,000 in student loans should be canceled. It has even been proposed to write off $ 50,000 in student loan debt and cancel student loans due to the coronavirus.
Biden: cancel student loan debt
In response to Covid-19, Biden proposed a Covid-19 student loan forgiveness plan to write off up to $ 10,000 in student loan debt for each borrower. However, Biden does not support large-scale student loan cancellation that would write off all your student loan debt, for example. Does Biden support any other student loan forgiveness? Yes, Biden would forgive all two- and four-year public college and university undergraduate tuition fees. Biden would also forgive all undergraduate tuition fees for borrowers who earn $ 125,000 or less per year and who are graduates of historically black private colleges and universities (HBCU) and institutions serving minorities (MSI). .
Can a president cancel a student loan debt?
While candidates and lawmakers can make proposals, it’s doubtful that a president – without Congress – can only write off student loan debt. Biden, who served as a United States Senator for nearly 40 years and is experiencing the separation of powers, would likely work with Congress to implement legislation to cancel student loan debt (rather than acting unilaterally as president) . Traditionally, when presidents or presidential candidates propose political initiatives, their plans are usually prescriptive – meaning that Congress must take the prescribed action. Or, the president’s administration will work with Congress to pass legislation. If Republicans retain control of the Senate after the November election, however, it may be more difficult to pass a comprehensive student loan cancellation bill.
It’s important to note that not everyone agrees that only Congress can write off student loan debt. For example, Warren, as a presidential candidate, said the US Department of Education has the power to write off student loan debt. Warren has been a leading advocate for student loan forgiveness, and Student Debt Crisis, a non-profit student loan advocacy organization, sent Warren a signed $ 1.2 million student loan forgiveness petition. of people. Warren said if she was elected president, she would ask the secretary of education to start remitting student loans on day one of a Warren administration. “I will start using existing laws from day one of my presidency to implement my student loan debt cancellation plan that provides relief to 42 million Americans – in addition to using all available tools. to tackle racial disparities in higher education, crack down on – take advantage of institutions and eliminate predatory loans, ”said Warren, a former professor at Harvard Law School, during her presidential campaign.
While the Department of Education can cancel federal student loans in the event of death, disability or fraud, for example, others argue that a large-scale student loan forgiveness plan would require congressional legislation. based on a separation of powers argument.
In the last two presidential administrations, a president has not canceled student loan debt through the secretary of education. Currently, President Donald Trump has extended student loan relief under the Cares Act, the $ 2.2 trillion stimulus package that Congress passed in March, until December 31, 2020. This means that certain federal student loan payments are suspended, interest will not accrue on these loans and any non-payment of these loans will count towards the cancellation requirements for public service loans. There will also be no collection of past due federal student debt during this period. While Trump implemented this extended student loan relief through an executive memorandum, Trump did not write off student loan debt, which would generally require congressional approval. In Congress, the latest Republican stimulus bill does not include student loan relief or student loan forgiveness. While Democrats in the House and Senate have proposed cancellation of student debt, Congress has failed to pass legislation. Since Biden and his running mate, Sen. Kamala Harris (D-CA) have both served in Congress, it is more likely that they will push their student loan program to Congress, rather than take unilateral action for the cancellation of student debt.
How to repay student loans
Even if federal student debt payments are temporarily suspended, your student loan balance and the interest rate will not change when payments resume. That is why you should act now to develop a student loan game plan to pay off student loans. What’s the best way to pay off student loans? Start with these four options, all at no cost:
Resources: student loans
15 secrets to refinancing student loans
Trump suspends student loans until December 31
When will my second incentive check take place?
Here’s when unemployment benefits of $ 300 per week can start
Will you get a second stimulus check in Trump’s executive order?
Why did you receive a $ 500 incentive check this week
New stimulus today: second stimulus check, unemployment benefits and more
What the stimulus means for your student loans
5 student loan changes for 2020
Trump: second stimulus checks could exceed $ 1,200
Second Stimulus Controls: Your Questions Answered
What Trump and Biden think about your student loans
Second Stimulus Controls: Your Questions Answered
Trump wants at least $ 2 trillion for the next stimulus
5 ways to get a student loan forgiveness
Navient Settles the Lawsuit – What It Means for Your Student Loans
Student Loan Refinance Rates Are Insanely Cheap