Biden mentioned he would cancel scholar debt of $ 10,000 for all debtors. Is it truly going to occur?
The White House on November 8, 2020.
ALEX EDELMAN | AFP | Getty Images
During the campaign, President-elect Joe Biden was described as “the most progressive candidate in history”. One of his guidelines that led to this description was his call for student debt relief.
Now that he’s been elected, the 42 million Americans with student loans may be wondering: is it really going to happen?
First, Biden proposed a scaled-down version of the debt relief plans that his left-wing rivals were campaigning for in the Democratic primary. Senator Elizabeth Warren, D-Mass., Wanted to cut up to $ 50,000 in student debt for those with household incomes less than $ 100,000. Meanwhile, Senator Bernie Sanders, I-Vt., Had said he would wipe out all of the country’s outstanding educational debt.
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Biden put forward a closer plan, saying it would cancel all borrowers’ debts of $ 10,000 for students and the rest of the debt for those who attended public colleges or historically black colleges and universities and earned less than $ 125,000 a year.
Overall, according to calculations by university expert Mark Kantrowitz, this would reduce the number of outstanding student loans of 1.6 trillion US dollars by about a third.
Despite election promises, educational issues are usually not a top priority for new presidents, Kantrowitz said. For Biden, however, it could be different.
“His wife, Dr. Jill Biden, is an educator and the student choice helped him make the choice,” said Kantrowitz.
Student debt weighs more on Americans than credit card or car debt, and more than one in four borrowers is either defaulting or defaulting. More than half of Americans say student debt is “a big problem” for the country, according to a survey by Politico / Morning Consult. And a poll found that 58% of registered voters support student loan making.
However, the ability to pass laws that would decrease or eliminate the human balance depends on the composition of the Senate, which is still in balance.
However, if the Democrats win both Senate runoffs in Georgia, chances are Biden may use what is known as a budget balancing act designed to cut the federal deficit to combine student loan forgiveness with tax cuts, Kantrowitz said.
A divided Congress will make forgiveness harder to make a reality, as Republicans are generally against the idea. Even if Democrats get a majority, Republicans can use the 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 during the campaign Warren said that she would do just that. However, Biden has not signaled whether or not he would follow this path.