Biden Administration Weighs in on Using Executive Action To Provide Student Debt Relief
The Biden administration is looking into the steps it can take to provide student debt relief through executive action, White House Press Secretary Jen Psaki said Thursday.
If it finds a way to cancel some portion of the $1.5 trillion in federal student debt, it can lift burdens off 43 million Americans who owe it, reported The Washington Post. This comes even after the administration called on Congress to pass legislation to help student debt borrowers and their families.
"The President continues to support the cancelling of student debt to bring relief to students and families," Psaki said in a tweet.
Psaki further noted that their team is reviewing any steps the president can take through executive action, adding that "he would welcome the opportunity to sign a bill sent to him by Congress."
Joe Biden Initially Dismissed Executive Action
President Joe Biden said he would support up to $10,000 in student debt forgiveness per borrower, reported The Associated Press.
Despite the administration's plans to help through executive action now, Biden did not initially show interest in pursuing executive action.
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In an earlier briefing, Psaki appeared to dismiss the idea of using presidential powers to erase students' debt. Instead, she said at the time that the president only had plans to pause student debt payments during the pandemic.
"He would look to Congress to take the next steps," Psaki said.
The Biden administration announced its plans for student debt relief hours after Democrats in the Senate led by Majority Leader Chuck Schumer reintroduced a resolution on the matter. According to CNBC, the Senate Democrats' entails a $50,000 forgiveness for all borrowers.
Democratic legislators said the resolution would help boost the economy and close the nation's racial wealth gap. In a statement, Schumer noted that during this time of crisis, communities of color are being disproportionately affected.
"We must do everything in our power to deliver real relief to the American people, lift up our struggling economy and close the racial wealth gap," Schumer said.
Biden expressed hesitation about canceling student debt through executive action, but pressure from his own party members is mounting.
Schumer added that Democrats were "committed to big, bold action," and the resolution "is one of the strongest steps the president can take to achieve these goals."
Does the Biden Administration Have Power Over Student Debt Relief?
Legal scholars have been back and forth so far about whether the Biden administration has the power to address student debt relief. However, some say that it's unlikely it will survive a legal challenge, The Associated Press noted.
During the Trump administration, steps were taken to block broad debt cancellation in early January. In an Education Department memo, it was concluded that the secretary had no authority to provide such assistance to borrowers, and the decision had to be up to Congress.
However, Schumer said he and Sen. Elizabeth Warren researched on the matter and concluded that "this is one of those things the president can do on his own."
Related story: COVID-19, Education: Top Priorities as Biden Outlines His 10-Day Executive Orders
He noted that the past presidents had been able to clear debt. But not on the scale that was being proposed.
The resolution was first proposed in the Senate last year and was introduced to the House by Reps. Ayanna Pressley, Ilhan Omar, and Mondaire Jones.
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