$ 50,000? $ 10,000 What is the likelihood that student loans will be made?

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While campaigning, President Joseph Biden reiterated his support for a student loan cancellation plan that would cut $ 10,000 in federal student loan debt per borrower. But since he took office, the pressure to forgive even more has increased.

Senate Majority Leader Chuck Schumer (D-NY) has repeated required Relieve up to $ 50,000 of debt for federal student loan borrowers. He has urged President Biden to use his executive powers to do so, a move also encouraged by several progressive lawmakers.

How likely is the president to take executive action to cancel student loan debt? And how much student loan debt relief can we expect?

Will President Biden take executive action to cancel $ 50,000 in student loan debt?

“I’m not going to let that happen,” President Biden told a borrower who asked about the $ 50,000 student debt relief proposal at a town hall hosted by CNN in Milwaukee.

Biden later made it clear that he was was willing to write off $ 10,000 of borrowers’ state student loan debt, but didn’t think he had any authority to reverse any more than that.

Senator Schumer and Senator Elizabeth Warren (D-MA) disagree and released a joint statement on Wednesday arguing that Biden has such executive powers.

“Presidents Obama and Trump have used their executive powers to cancel the student loan debt,” they said, adding, “The cancellation of $ 50,000 in federal student loan debt will help fill the racial wealth gap and help bring the world to 40 Percent of non-college borrowers benefit and help boost the economy. It’s time to act.”

But at a White House briefing on Wednesday, White House Press Secretary Jen Psaki stressed that Biden is unlikely to take action until his team at the Department of Justice is confirmed and given the opportunity to review his authoritative powers and make recommendations. “He will ask them to conduct a legal review of his power to act through executive action, combined with a political review by his Home Affairs Council on how to seek executive debt relief, if any,” said Psaki.

The president has said that student loan forgiveness over $ 10,000 must be targeted based on the borrower’s income, the type of debt in question, and other considerations, rather than the widespread unlimited debt relief proposed by some progressive lawmakers.

Could Congress pass a student loan waiver bill?

One of President Joseph Biden’s first executive moves in office was to extend the federal student loan payment hiatus through September to provide some relief to the country’s estimated 45 million borrowers – and to raise hope that he could use his executive powers as well. to call some of their student loan debt.

But while Biden has hinted that he is ready to use his executive powers to cancel federal student loans of up to $ 10,000 per borrower, he has repeatedly urged Congress to take action instead and send him a bill for signature.

If Congress moves forward and sends the president a package offering $ 10,000 debt relief, Psaki said Wednesday, “he’d like to sign it.”

But that seems unlikely in the short term. Democrats have a slim majority and Republicans are strongly opposed to widespread debt relief. While it can be easier to raise aid for $ 10,000 federal debt cancellation on student loans with some restrictions, there are no guarantees.

Still, experts like Mark Kantrowitz, Editor and VP of Research at Savingforcollege.com, are confident. Kantrowitz said the $ 10,000 loan was “more likely than not.”

However, he warns that even if it does, it can be scaled back in a number of ways – with eligibility restrictions such as low-income borrowers or borrowers in financial need.

Forgiveness can also be limited to borrowers on federal loan from the US Department of Education, just like the pause in payment that would exclude some borrowers from federal student loans. (For example, the current payment break and 0% interest rate covers federal direct loans, FFEL program loans, federal Perkins loans, and defaulted HEAL loans, but only if they are loans owned by the U.S. Department of Education.)

However, the pressure to cancel student loans is increasing. Student loan borrowers now owe nearly $ 1.7 trillion in total, and approximately one in eight Americans owes some student loan debt. Student loan waiver was a hot topic in the campaign, and in a recent Morning Consult poll, 56% of adults said they either strongly or strongly supported the $ 10,000 student loan waiver plan that Biden advocated during his campaign support in some way.

But hope can fade a little. Another recent survey of more than 3,649 college students conducted by study guide platform OneClass found that only 13% of them expect the new government to implement a student debt relief policy.

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