I will not cancel $ 50,000 in student loans

This story is developing.

President Joe Biden says he won’t forgive $ 50,000 of student loans.

Here’s what you need to know.

Student loans

AT CNN town hall tonight in Milwaukee, Wisconsin, an audience member said there should be $ 50,000 in student loan cancellation of borrower debt, not $ 10,000 in student loans, as Biden proposed. When the audience member asked the president what he would do to cancel $ 50,000 in student loans, Biden replied, “I won’t.”

Biden’s position tonight is clear that the president will not act unilaterally to write off student loan debt. Biden’s direct response – and the rejection of a Democratic proposal in Congress to write off up to $ 50,000 in student loan debt for borrowers – comes as no surprise. For months, Biden has been consistent in his position that he wants Congress to immediately cancel student loans. Biden believes Congress, not the president through executive action, is the right branch of government that controls federal spending, which includes any student loan cancellation plan.

“I don’t think I have the authority to make this happen,” Biden said.

Student loan cancellation

What does this mean for student loan cancellation? Senate Majority Leader Chuck Schumer (D-NY) and Senator Elizabeth Warren (D-MA) want Biden to write off up to $ 50,000 in student loans by executive order. They believe that the Higher Education Act of 1965 gives the US Secretary of Education the legal authority to cancel student loans. They refer to Section 432 (a) of the Higher Education Act, which grants the US Secretary of Education the power to “modify, compromise, waive or release any right, title, claim, lien or demand, regardless of acquisition, including any equity or right of redemption. On the basis of this provision, they argue that it is indisputable that the President (through the Secretary of Education) can cancel student loans for all student loan borrowers.

Democrats in Congress have campaigned to pressure the president to cancel student loans by executive decree. Schumer, Warren, Representative Alexandria Ocasio-Cortez and others have publicly stated that Biden has the power to write off student loan debt, and Schumer said Biden can do it with a “stroke of the pen.” The White House says Biden supports the cancellation of student loans and that Biden will consider forgiving student loans through executive action if he has legal authority.

That said, Biden, Schumer and Warren all want the student loan canceled. However, they differ in the details. For example, basically, Schumer and Warren want more student loan debt written off. Procedurally, they want Biden – not Congress – to cancel student loans. That’s a tall order, given the estimated price tag of $ 650 billion. Traditionally, Congress would pass a law to spend federal dollars, especially of this magnitude. While the United States Secretary of Education has the power to write off student loan debt due to fraud, total and permanent disability, and other circumstances, it has not been tested in court whether the secretary Education has unilateral power without further authorization from Congress simply to cancel large-scale student debt loans.

Will you get your student loan canceled?

More and more, it is becoming clear that Biden will not cancel student loans by executive order. This includes $ 50,000 in student loan cancellations or $ 10,000 in student loans. Despite continued public pressure, Biden confirmed his position on canceling the student loan tonight. This means that if Democrats in Congress want student loan cancellation, they will likely have to pass legislation. To be clear, student loan cancellation is not universally supported in Congress. Republicans will not support any student loan cancellations. Additionally, it is not clear whether Democrats have enough voice to pass a student loan forgiveness bill. Perhaps this is the reason Democrats were hoping Biden would write off student loan debt. Without a clear path forward, there is no guarantee that Congress can write off $ 10,000 in student loans, or any student loan debt for that matter. Don’t just hope for your student loan cancellation. Make sure you get a student loan game plan. Start with these three options, all free:

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