Joe Biden Rejects Democrats' Plan for $50,000 Student Loan Forgiveness

Biden separates self from Dem call to erase $50G in student loan debt

Senate Democrats’ push for President Biden to forgive $50,000 in student loans would make 36 million debt-free

When the resolution was reintroduced earlier this month, White House Press Secretary Jen Psaki threw out a similiar figure for student loan debt forgiveness.

"We'll wait for that conclusion before a final decision is made", Psaki said.

President Biden on Tuesday slammed the door shut on a proposal to erase $50,000 in federal student loan debt per borrower with six words: "I will not make that happen", he said at a CNN town hall.

President Biden indicated on Tuesday that writing off $50,000 in student debt is not something that he believes can be "done with presidential action", but said he is prepared to eliminate $10,000 for students. "Because I don't think I have the authority to do it by signing the pen".

Some democrats in Congress including Chuck Schumer, Elizabeth Warren and Alexandria Ocasio-Cortez are pushing for $50,000 of foregiveness, and asking that Joe Biden do so immediately through an Executive Order. Chuck Schumer of New York, and Sen. "Democrats are committed to big, bold action, and this resolution to cancel up to $50,000 in federal student loan debt is one of the strongest steps the president can take to achieve these goals". "The case against student loan forgiveness is looking shakier by the day".

Experts at Harvard's Legal Services Center and its Project on Predatory Student Lending also concluded a year ago that the president has the authority to order a sweeping cancellation of student debt. "The sums involved in loan-forgiveness proposals under discussion would exceed cumulative spending on numerous nation's major anti-poverty programs over the last several decades". Wednesday, they responded to Biden's town hall comments with a joint statement.

"These plans aren't about debt 'forgiveness, ' they're about transferring that debt to others", Matt Beienburg, the Goldwater Institute's education policy director, told The College Fix in December.

"It throws cold water on activists' enthusiasm for no reason whatsoever", Greene said, calling it a "distraction" for other parts of his agenda, such as Covid relief, where progressives have largely been pleased with his approach. Biden's holding back, but numerous arguments against it just don't hold water on close inspection.

Warren added that even before the pandemic the "student loan debt crisis was already crushing millions of Americans". "Canceling $50,000 in federal student loan debt will help close the racial wealth gap and benefit the 40% of borrowers who do not have a college degree and help stimulate the economy".

He says using the Ivy Leagues to argue for a much smaller amount of debt reduction, or none at all, is misleading: "The idea that small-level, or no debt cancellation is the best way forward because a trivial amount of rich people may benefit is a talking point to distract", he says. Many offer financial aid packages aimed at keeping students free from federal student loans.

Another 23 million borrowers owe balances that are between $10,000 and $60,000; and more than 7 million borrowers have federal debt of $60,000 or higher.

While Biden presented his higher-education proposals as sensible and pragmatic alternatives to unilateral debt cancellation-which he falsely insisted he doesn't have the authority to carry out-racial justice activist Bree Newsome argued that "there's nothing practical about Biden's stance on student loan forgiveness".

But the Trump administration, in its waning days in office, issued a legal opinion concluding the department lacks the authority to wipe out large amounts of debt without congressional approval. "I'm exhausted of talking about Donald Trump", he said.

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