Democrats press Biden for $ 50,000 student loan cancellation
Democrats have a plan to cancel student loans – and apparently that involves putting pressure on Joe Biden.
Here’s what you need to know.
House Democrats are not giving up on their student loan cancellation plan. Senate Majority Leader Chuck Schumer (D-NY) and Senator Elizabeth Warren (D-MA) want President Biden cancel up to $ 50,000 in student loans through an executive order. While the Senate plan would be limited to borrowers who earn less than $ 125,000 a year, some House Democrats are calling on Biden to “write off $ 50,000 in student loans” without mentioning any income limitations.
Student loan cancellation by “public pressure”
As Fox News reportedRep. Alexandria Ocasio-Cortez (D-NY) wrote in a question-and-answer session on Instagram: “The Biden admin MUST be pushed. They said they were comfortable with $ 10,000 forgiveness, but we NEED at least $ 50,000 minimum and there is support for 50,000.
Ocasio-Cortez says the cancellation of student loans “it all comes down to public pressure.” For the moment, than public pressure addressed Biden, that Democrats want to unilaterally cancel student loans without further authorization from Congress. They cite the Higher Education Act of 1965, which they say gives Biden’s U.S. Secretary of Education the existing power to cancel student loans today. Biden says he’s unlikely to cancel student loans through executive action, and he wants Congress to immediately cancel $ 10,000 in student loans. Biden said he consider canceling the student loan by decree. However, the Biden administration does not believe the president has such unilateral authority or recognizes that such action would be challenged in the courts, which delay any student loan cancellations for millions of student loan borrowers.
Will your student loans be canceled?
Will your student loans be canceled? Democrats are divided over how much student loan debt to write off, who qualifies and how. This is not good news for student borrowers. The internal divide between the progressive and moderate wings of the Democratic Party was played out with stimulus checks, and now it’s played out with the cancellation of student loans. Along with the stimulus checks, some House Democrats say Biden’s plan for $ 1,400 stimulus checks in the new stimulus package should be replaced with $ 2,000 per month in stimulus checks until the end of the Covid-19 pandemic. What does this division mean for student loans? Despite this disunity, at least some Democrats – including Schumer, Warren and Ocasio-Cortez – are united.
However, their unified approach is to put pressure on the president publicly. Biden has said he will sign any student loan cancellation legislation passed by Congress. If Democrats want a massive student loan cancellation, why not pass a law? Biden proposed Three Ways to Cancel Student Loan Debt, but Congress has not yet focused on these other avenues either. There is nothing wrong with standing up for your cause and fighting for your constituents. This is what lawmakers should do. However, lawmakers also form bipartisan coalitions and pass laws to improve people’s lives. If Democrats say Republicans won’t work with them, find consensus with other Democrats first. Lobbying the president – a fellow Democrat – who has already responded in good faith to your demands is usually not an effective strategy. If Biden can’t unilaterally cancel student loans and Democrats want student loans canceled, then find a way to pass a law. Expect a student loan showdown because not everyone in Congress thinks canceling student loans is good public policy. Where Does That Leave Student Loan Borrowers? Make sure you have a student loan game plan because there is no guarantee that Congress will cancel your student loans, nor the amount of the student loan forgiveness. Instead, start with these three options, which come at no cost: