Biden to overhaul executive authority to cancel student debt
WASHINGTON – President Joe Biden asked Education Secretary Miguel Cardona to prepare a note on his legal permission to cancel student debtChief of Staff Ron Klain said Thursday, as pressure mounted for the administration to student loan crisis crippling millions of Americans.
Klain said in an interview with Politico that Biden will decide how to proceed once he reviews the memo, which could be sent to his office in the coming weeks.
“He’ll look at that legal authority, he’ll look at the policy issues around it, and then he’ll make a decision,” Klain said. “He hasn’t made a decision on this anyway. In fact, he hasn’t received the grades he needs to start focusing on this decision yet.”
Senate Majority Leader Chuck Schumer, DN.Y., Senator Elizabeth Warren, D-Mass., And other Democrats on American parliament are put pressure on Biden to cancel up to $ 50,000 in student debt through executive action. Lawmakers admitted they lacked the Republican backing to pass a bill that would do the same.
Biden supported cancellation of up to $ 10,000, but said he didn’t believe he had the legal authority to unilaterally erase up to $ 50,000 without Congressional action.
“I understand the impact of debt, and it can be debilitating,” Biden said at a town hall event in February. “I am ready to cancel the debt of 10,000 dollars, but not 50 [thousand], because I don’t think I have the power to do it. “
The memo is being prepared with the Ministry of Justice, under the leadership of the Ministry of Education.
More … than 40 million It is estimated that people in the United States have student loan debt. the Federal Reserve estimates that in the third quarter of 2020, Americans owed more than $ 1.7 trillion in student loans. Studies show that students of color are more likely to take on student debt and struggle disproportionately to pay it off.
Supporters of cancel student debt argued that the president has the power to cancel student loans under the Higher Education Act 1965, which gave the secretary of education the power to support student loans. Biden has already wielded that authority, supporters of debt cancellation say, by suspending student loan payments during the coronavirus pandemic.
White House press secretary Jen Psaki told reporters in February that if his executive authority’s scrutiny continued, Biden would be “eager” to sign a bill providing for 10-month debt relief. 000 dollars.