Biden May Cancel Student Loans for Millions of Americans

Biden May Cancel Student Loans for Millions of Americans

Biden STUDENT LOAN Bombshell Could Shake The Entire Economy

( – There’s an update available in the ongoing debate about whether the Biden administration will move forward with plans to cancel millions of dollars in student loan debt. During an April 25 White House meeting, President Joe Biden told Congressional Hispanic Caucus members he was actively considering extending the current moratorium on payments, which currently ends in August. He also said Democrats are “exploring” options for canceling individual student debt.

Biden Signals Willingness to Move Forward

Representative Tony Cardenas (D-CA) started the conversation about student loan relief by asking the president to clarify his plans for the moratorium. In response, Biden reflected on his past achievements, pointing out he’s “extended it every time.”

Cardenas also apparently pushed Biden to go beyond simply addressing the moratorium by committing to erase up to $10,000 in debt for students in need. He also asked the president to provide quarterly updates on the Advancing Equity, Excellence and Economic Opportunity for Hispanics initiative and to make interagency plans better available to the public.

Cardenas shared further details about Biden’s response to these issues during an exclusive interview later published by CBS News. While he was careful to point out the president did not agree to wipe out all debt, and in fact, did not even confirm the total volume of debt up for consideration, he also said Biden was “incredibly positive” about each point.

“I’m looking to do something about that,” the president apparently told Cardenas. “And I think you’re going to like what I do.”

Who Will Be Affected?

A decision to forgive any amount of student loan debt — much less up to $10,000 per student in a single executive order — would deeply impact thousands of struggling Americans. Around 43 million citizens owe a sum total of $1.6 trillion in student loan debt as of 2022, making it the second most common source of financial obligation in the US.

The debate about just who should receive relief, however, is ongoing. Some believe the government should only offer forgiveness to the neediest students attending public schools. Hispanic Caucus members, including Cardenas, disagree with this kind of segmentation. Instead, they believe relief should be available to any student struggling to pay for an education — public, private, or otherwise.

Is Forgiving Student Loans Wise?

It’s difficult to answer this question briefly because so many variables can affect the outcome. Struggling students who carry tens of thousands in debt would undeniably benefit from the relief. But, that’s far from the only consideration.

A decision to forgive all student loans regardless of affordability or income factors, on the other hand, is just as likely to carry devastating side effects. The government might face protracted legal battles from those who disagree with the concept.

Betsy Mayotte, a representative of The Institute of Student Loan Advisors, told CBS News some leaders might perceive broad relief options as a violation of federal statutes. Officials disagree on whether Biden has the authority to forgive student loan debt via executive order. Moving forward along that path could ignite a protracted and messy Congressional fight.

However, following an official regulatory process — creating new regulations or laws to include options for relief — may be a safer route. It’s also likely to take far more time.

These points, however, do little to address ongoing debates about the government’s ability to afford student loan forgiveness or moral arguments centered on the correctness of providing access to debt relief. It’s challenging to ignore America’s skyrocketing deficit or the fact that forgiveness programs would be costly. Yet, it’s equally hard to stand by and watch students continue to struggle with skyrocketing tuition and inflation rates.

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