Former Democratic Presidential Vice President Joe Biden speaks about the economic recovery during a campaign event at the Colonial Early Education Program at the Colwyck Center on July 21, 2020 in New Castle, Delaware.
Drew Angerer | Getty Images
During the election campaign, President-elect Joe Biden was called “the most progressive candidate in history.” One of his policies that led to this description was his call for student debt cancellation.
Now that he’s been elected, the 42 million Americans who have student loans may be wondering: will this really happen?
For starters, what Biden proposed was a scaled-down version of the debt cancellation plans his left-wing rivals in the Democratic primary campaigned on. Senator Elizabeth Warren, D-Mass., Wanted to write off up to $ 50,000 in student debt for people with household incomes below $ 100,000. Meanwhile, Senator Bernie Sanders, I-Vt., Had said he would write off all of the country’s unpaid education debts.
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Biden presented a smaller plan, claiming he would forgive $ 10,000 in student debt for all borrowers, and the rest of the debt for those who attended public colleges or historically black colleges and universities and earn less than $ 125,000 per year.
In total, that would reduce the amount of the country’s outstanding student loans by around a third, according to calculations by higher education expert Mark Kantrowitz.
Despite campaign promises, education issues are generally not a top priority for new presidents, Kantrowitz said. It could be different for Biden, however.
“His wife, Dr Jill Biden, is an educator and the student vote helped him elect her,” Kantrowitz said.
Student debt weighs more on Americans than credit card or auto debt, and more than one in four borrowers are either past due or in default. More than half of Americans say student debt is “a major problem” for the country, according to in a Politico / Morning Consult poll. And an investigation revealed that 58% of registered voters are in favor of canceling student loans.
However, the possibility of passing a law that would lower or eliminate people’s balances depends on the composition of the Senate, which is still in the balance.
However, if Democrats win both Senate votes in Georgia, it’s possible Biden will use a so-called budget reconciliation bill, which aims to cut the federal deficit, to couple student loan cancellations with cuts. tax, Kantrowitz said.
A divided Congress will make it more difficult to achieve pardon, as Republicans generally oppose the idea. Even if Democrats get a majority, Republicans can use filibuster to block bills.
Can a President Cancel Student Debt Without Congress?
There is a growing argument among the left that he or she can, and on the campaign trail, Warren said she would do just that. Biden, however, has not indicated whether or not he will go that route.
What would a $ 10,000 student loan forgiveness mean to you? If you would like to share your story, please email me at [email protected]
