“Immediate $10,000 forgiveness of student loans, helping people up there in real trouble,” Joe Biden said Monday. “They’re having to make choices between paying their student loan and paying the rent. Those kinds of decisions.”
Biden reiterated that he would like the next Congress to legislate on the matter rather than him issuing an executive order on it.
But Biden could be facing opposition from inside his own party. Senators Elizabeth Warren and Chuck Schumer have pushed for Biden to go further and cancel up to $50,000 in student loan debt immediately.
Warren and Schumer introduced a resolution last September, in which they “outlined a bold plan for the next President of the United States to use existing authority under the Higher Education Act to cancel up to $50,000 in Federal student loan debt for Federal student loan borrowers.”
The joint resolution outlined how Biden, the presumptive President-elect, should use executive authority to cancel student loan debt and ensure there is no tax liability for Federal student loan borrowers resulting from administrative debt cancellation.
“Education is supposed to be a ladder up, but for too many, the burden of student debt has become an anchor holding them down,” said Leader Schumer. “Massive student loan debt is exacerbating the historic and overlapping crises our country is facing, especially for communities of color, which have been hit hardest by the health and economic consequences of COVID-19. Our resolution lays out a way for the president to change that. Canceling student loan debt would help boost our struggling economy and close the racial wealth gap that has persisted for far too long.”
“Even before the coronavirus pandemic plunged our economy into chaos, student loan borrowers were already in crisis,” said Senator Warren. “The President of the United States has the power to broadly cancel student loan debt, help close the racial wealth gap, and give a big boost to families and our economy. It’s time to use this existing authority and permanently improve the lives of tens of millions of Americans.”