Since President Biden entered into office, the public and other top Democratic officials have pushed for him to consider forgiving $50,000 in student loan debt for each borrower. For the first time in his presidency, Biden mentioned that he is “taking a hard look” into forgiving some federal student loan debt on Thursday, but the amount will likely be less than $50,000 per borrower.
He also mentioned that he would have more details and a better answer regarding loan forgiveness in the next couple of weeks which could mean big things for student loan borrowers. During Biden’s presidential campaign, he emphasized his goals to cancel a sufficient amount of money in student loan debt which he has not discussed prior.
However, he has successfully extended the pause on federal student loan repayment several times which will now end on August 31, 2022. There have been previously raised concerns that student debt cancellation could face legal challenges if done through executive action which likely explains why there has been a halt in the process.
As the pandemic has prolonged, individuals across the country have been financially impacted in a negative manner and making student loan repayments have been one of the least important payments for most. Currently, the country’s outstanding education debt balance exceeds $1.7 trillion and poses a larger issue to households than credit card or auto debt. Eliminating $10,000 can be a significant gesture for many individuals’ debt and would even eliminate the entire balance for almost 12 million people which represents how relevant that amount will be.
This process has ultimately been an uphill battle as Biden is faced with demands and pushback from both sides. Progressives argue that Biden does have the authority to cancel large amounts of debt and should go much further. They say Biden needs to fulfill his campaign pledge to wipe out at least $10,000 of debt.
Republicans, on the other hand, have consistently been opposed to the type of widespread debt cancellation that Biden is considering and have openly expressed their contempt with the issue.
In the next coming weeks, Biden will make a more firm decision and the fate of student loan forgiveness will hang in the balance until then.
This blog post is part of the CIMA Law Group blog. If you are located in Arizona and are seeking legal services, CIMA Law Group specializes in Immigration Law, Criminal Defense, Personal Injury, and Government Relations.
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