President Joe Biden again opposes $ 50,000 debt relief on student loans

(CNN) – President Joe Biden made it clear at CNN City Hall on Tuesday evening that he disagreed with other members of his party who want to cut $ 50,000 in student debt per borrower.

“I won’t make it,” Biden said after a member of the audience said his proposal to cancel $ 10,000 per borrower didn’t go far enough.

But leading Democratic Congressional leaders, including Senate Majority Leader Chuck Schumer and Massachusetts Senator Elizabeth Warren, are calling on Biden to cut $ 50,000 per borrower. Dozens of Democrats reintroduced a bicameral resolution earlier this month calling on Biden to take action, arguing that he has executive power to do so.

Biden argues that the government should not cancel debts of the people who went to Harvard and Yale and Penn – and has also suggested that he thinks Congress should make changes through laws that would make it more difficult to reverse them.

“The president has and continues to support the cancellation of US $ 10,000 per person in federal student loan debt in response to the Covid crisis,” White House press secretary Jen Psaki said at a briefing in February after lawmakers passed the resolution had imagined.

She added that the President “calls on Congress to prepare the proposal” and “looks forward to signing it”. But later tweet from the press secretary indicated that the administration was open to considering an executive option.

Deferred payment extended until September

In one of his first acts, Biden extended the break in student loan payments and interest, a Covid aid introduced by Congress last year that had already been extended by the Trump administration. Federal student loan borrowers are not required to make payments until October 1 at the earliest.

He also supports making community colleges free for everyone, making public four-year colleges free for students from families who earn less than $ 125,000 a year, and changing the existing system to make student loan payments more affordable are.

Extensive cancellation of federal debt for student loans would be unprecedented. But a memo from attorneys at Harvard Legal Services Center and its Project on Predatory Student Lending says the Department of Education has authority to do so.

The department has already put in place some more targeted guidelines for debt relief. It erases the debts of betrayed students and disabled veterans. According to the National Student Legal Defense Network, just by expanding these programs, Biden could relieve hundreds of thousands more borrowers.

Ongoing debate

More progressive members of the Democratic Party have been calling for student debt relief for years.

Independent Senator Bernie Sanders of Warren and Vermont put forward forgiveness plans when they ran in the Democratic presidential primary. Biden made a proposal to forgive $ 10,000 per borrower only after the pandemic began and was the alleged candidate.

Legislature tabled a similar resolution last year calling on the Trump administration to cancel student loan debt – but former Education Secretary Betsy DeVos criticized the proposal as “state gift giving.”

House Democrats included a provision to remove $ 10,000 per borrower from a comprehensive Covid relief bill passed in May that was never taken up in the then Republican-led Senate.

The CNN Wire
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