President Joe Biden stated on Thursday that he will have a response on student loan forgiveness in a few weeks.
Joe Biden’s remarks are certain to disappoint advocates and several Democrats, like Senate Majority Leader Chuck Schumer of New York, who have pressed him to cancel loans for $50,000 or more per borrower. Student debt forgiveness has become a top concern for many liberals, and it’s a move that might boost Democratic support among younger and better-educated voters ahead of November’s crucial midterm elections.
However, the Biden government has been hesitant to make an unprecedented unilateral cancellation of government-owned college debt, a move that would put his legal powers to the test.
Joe Biden Urges Congress To Adopt A Debt-Forgiveness Measure
The country’s outstanding school debt totals more than $1.7 trillion, putting a greater strain on families than bank card or vehicle debt. 25% of student loan debtors, or 10 million people, are said to be delinquent or in default.
Joe Biden did not specify how much of the debt he was contemplating canceling, though he did endorse a $10,000 debt relief package during the campaign.
For over 12 million people, canceling $10,000 per student would wash out $321 billion in federal student loans and eradicate their entire debt. Around 70% of student loan debtors would still be responsible for their debt. For the situation to be fixed, Wisdom Cole, the executive president of the NAACP Youth & College Division, stated all student debt ought to be canceled. Biden’s student loan forgiveness is based on federal initiatives already in place. In contrast, if Biden wants to cancel student loans through an executive order, opponents may seek to delay implementation through court challenges.