The Biden administration tasked Education Secretary Miguel Cardona with determining the legality of canceling up to $50,000 of student loan debt via executive action. White House chief of staff Ron Klein indicated the report would be ready in the next few weeks.
Long before his confirmation, President Biden stated that he supported up to $10,000 of student loan debt forgiveness. However, that figure has been roundly criticized as inadequate and insufficient by both Democratic Party members and scores of borrowers.
Is executive action the answer to student loan debt?
President Biden doesn’t think so. He supported his reluctance to simply erase student loan debt by referring to a lack of Constitutional authority and skepticism about the effects of such a move.
Many of his fellow Democratic Party members disagree. Most notably, Senate Majority Leader Chuck Schumer fully endorses the legality of Presidential power in the issue.
Sen. Schumer plainly stated that the President wouldn’t need the approval of Congress at all. Still, many others foresee substantial challenges to the move, expecting opposition through the court system.
If Secy. Cardona determines that the executive action is legal, it would bode well for student borrowers everywhere. Until then, student loan forgiveness is unlikely to go ahead in any capacity.
Over a trillion dollars of debt could be forgiven, should the President move ahead with a $50,000 loan forgiveness action. Most, if not all of that debt, would be from federal sources while private student loans aren’t likely to be affected.