Biden Considering Taking Massive Executive Action on Student Loans Amid Pressure From Progressives: Report
As a candidate, President Joe Biden called for canceling up to $10,000 of student loan debt per borrower. And White House Press Secretary Jen Psaki has said he would be “happy” to sign a bill to cancel student loans up…
As a candidate, President Joe Bidencalled for canceling up to $10,000 of student loan debt per borrower.
And White House Press Secretary Jen Psaki has said he would be “happy” to sign a bill to cancel student loans up to $10,000.
Biden has previously argued he does not believe he has the power to unilaterally cancel student loan debt.
However, that view may be changing.
According to The Wall Street Journal, “Biden signaled to House Democrats this week that he is seriously considering taking action to forgive student-loan debt on a large scale, according to congressional aides and others familiar with the discussions.”
“Following a Monday meeting with the president at the White House, members of the Congressional Hispanic Caucus said they felt confident that Mr. Biden is warming to calls from progressive Democrats to take executive action to erase at least some of the debt held by borrowers with federal student loans,” it added.
However, the Journal reports that Biden “told the lawmakers that he was weighing the timing of any announcement and wanted to make sure it didn’t contribute to inflation.”
Psaki noted on Tuesday, “We have talked about how we are looking at, and he is looking at other executive authority options to bring relief to people who have student loans.”
The president also reportedly signaled that he would be willing to extend the freeze on student loan payments again.
The Journal notes that roughly 40 million people owe federal student loan debt.
Sen. Elizabeth Warren (D-Mass) and Senate Majority Leader Chuck Schumer (D-N.Y.) have pressed Biden to take executive action to cancel up to $50,000 in student loan debt, as IJR reported.
But during a town hall event in Feb. 2021, Biden shot down the idea of canceling up to $50,000 in loans.
“I am prepared to write off the $10,000 debt but not $50 , because I don’t think I have the authority to do it,” he said.
In July, House Speaker Nancy Pelosi (D-Calif.) disputed the notion that the president can unilaterally cancel student loan debt.
“People think that the President of the United States has the power for debt forgiveness. He does not,” she told reporters.
“He can postpone, he can delay, but he does not have that power. That would best be an act of Congress,” she continued.
She said that student loan forgiveness is a legitimate policy discussion. However, she reiterated, “The president can’t do it. So that’s not even a discussion.