Biden reportedly exploring options to write off $ 50,000 in student loan debt

Joe biden maybe change your mind about the massive student loan forgiveness.

In an interview with Politco White House Chief of Staff Ron Klain confirmed on Thursday that the president is exploring his options to write off much of the debt held by federal https://bridgepayday.com/ student loan borrowers. Klain said Biden asked Education Secretary Miguel Cardona to prepare a memo describing his potential legal authority to write off up to $ 50,000 in student debt per borrower.

“Hopefully we will see this in the next few weeks… He will look at this legal authority, he will look at the policy issues around it, and then he will make a decision,” Klain said. “He hasn’t made a decision on this anyway. In fact, he has yet to receive the grades he needs to start focusing on this decision.

Biden previously said he would not support the massive cancellation of student loans, despite increasing pressure from Congressional Democrats. The president reiterated his position at a CNN town hall in February, when asked about the possibility of canceling up to $ 50,000 in student loan debt per borrower.

“I won’t do that,” Biden said at the Milwaukee event. “… I’m ready to write off a debt of $ 10,000, but not 50 because I don’t think I have the power to do it.”

The president said he was also hesitant to write off large sums of student debt, as it could disproportionately benefit those who attended elite schools.

“It depends on whether or not you go to a private university or a public university,” Biden added. “It depends on the idea that I say to a community, ‘I’m going to write off the debt, the billions of dollars in debt, for the people who went to Harvard and Yale and Penn.”

According to Federal Reserve, there are about 40 million people in the country with unpaid student debt. As of February 5, Americans collectively owed more than $ 1.7 trillion in student loans. Canceling $ 50,000 for each borrower would reduce the debt balance to $ 700 billion.

At a press conference Thursday in Massachusetts, Congress Democrats Elizabeth Warren and Ayanna Pressley called on POTUS to write off $ 50,000 in student loan debt, saying it had the power to do so under the Law on higher education in 1965.

“Our economy would be better off if everyone with student debt could go out and start their small business, be able to buy a house and get a job in the public service,” Warren said. “If we take the position that if I haven’t figured it out in the past, you can’t get it now, we never build anything. We would not have created social security. We would not have started Medicare. ”

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