Biden asks Education Secretary if he can legally cancel $ 50K in student debt

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Biden asks his education secretary if he can legally forgive up to $ 50,000 in student debt for each American

  • President Joe Biden’s Secretary of Education is investigating whether the president can cancel up to $ 50,000 in student loans per borrower
  • Chief of Staff Ron Klain said at a Politico Playbook event on Thursday that Biden had asked Education Minister Miguel Cardona to write a memo
  • Biden has agreed to forgive $ 10,000 in student loans and has publicly asked Congress to send him a bill
  • A number of prominent Democrats, including Senate Leader Chuck Schumer, have asked him to do this through executive measures and make it $ 50,000.

President Joe Biden’s Secretary of Education is investigating whether the president can cancel up to $ 50,000 in student loans for millions of borrowers.

White House Chief of Staff Ron Klain said a Politico Playbook event on Thursday that Biden has asked Education Secretary Miguel Cardona to find out if the president has the legal authority to wipe out their balance.

On the campaign trail, he said he wanted to wipe out $ 10,000 per borrower, but prominent Democrats, including Senate Leader Chuck Schumer, Senator Elizabeth Warren, and Representative Alexandria Ocasio-Cortez, have pressured him to pursue $ 50,000 in debt relief per student.

President Joe Biden

Education Secretary Miguel Cardona

Education Secretary Miguel Cardona

President Joe Biden (left) has asked education secretary Miguel Cardona (right) to write him a memo on whether he can legally cancel $ 50,000 in student loans per borrower

“Hopefully we’ll see that in the coming weeks,” Klain said of the memo.

“And then he will look at that legal authority, he will look at the policy issues around it and he will make a decision,” Klain added.

During Tuesday’s briefing, press secretary Jen Psaki ignored a question of why the $ 40,000 difference between what Biden and Schumer wanted to do.

“The president continues to call on Congress to cancel $ 10,000 in debt to student loan borrowers,” she said. “That’s something Congress could do something about, and he likes to draw.”

We’re still reviewing … our student loan options. This includes examining the authorities we have, the existing loan forgiveness programs that are clearly not working as well as they should. This includes the borrower’s defense, total and permanent disability costs. There are many steps we are looking at, and we will continue to review them and of course contact Leader Schumer about our process, ”she added.

While Psaki pointed to Congressional action, Democrats have urged Biden to wipe the blame with an executive order.

‘Biden-Harris could forgive billions of dollars in student loans, giving tens of millions of Americans an immediate financial boost and helping close the racial wealth gap,’ Warren tweeted in Novemberdays after the election was voted in favor of Biden. “This is the most effective executive action available for a massive economic boost.”

Earlier this week, the administration also announced that it is extending the pause on student loan payments for the more than 1 million borrowers who defaulted on private loans guaranteed by the federal government.

“That’s actually a pretty important step,” Psaki noted on Tuesday.

Speaking about the student loan memo at a Politico Playbook event Thursday, White House Chief of Staff Ron Klain said he expected to see it `` in the coming weeks. ''

Speaking about the student loan memo at a Politico Playbook event Thursday, White House Chief of Staff Ron Klain said he expected to see it `` in the coming weeks. ''

Speaking about the student loan memo at a Politico Playbook event Thursday, White House Chief of Staff Ron Klain said he expected to see it “ in the coming weeks. ”

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