Joe Biden Student Loan Cancellation: Democrats Urge POTUS To Take Action, Warn About Critics

Eighty-seven Democratic lawmakers, including senators and representatives, have sent a letter to President Joe Biden, urging his administration to offer additional relief considering the upcoming resumption of federal student loan payments on October 1, according to NewsWeek.

Earlier in June, the Supreme Court ruled 6-3 against Joe Biden student loan cancellation initiative.

The plan aimed to provide debt relief to over 43 million Americans, granting eligible borrowers earning under $125,000 annually up to $10,000 in debt reduction, with a provision of $20,000 for Pell Grant recipients from economically disadvantaged backgrounds. The total owed by borrowers collectively surpasses $1.6 trillion.

Though loan payments are set to recommence in October after a multi-year pause initiated during the COVID-19 pandemic under the prior administration, interest will begin accruing on loans from September 1 onward.

The letter, endorsed by notable figures such as Senator Elizabeth Warren, Majority Leader Chuck Schumer, and Representative Ayanna Pressley, was delivered nearly a year after President Biden announced his intent to cancel $10,000 of debt for lower- and middle-income borrowers.

This move was projected to eliminate the debts of around 20 million borrowers, including many Latino and Black borrowers.

Republican Critique of Joe Biden Student Loan Cancellation

President Joe Biden's decision to cancel federal student loans for many borrowers has been met with praise from Democrats, who view it as the realization of a pivotal campaign commitment aimed at assisting Americans wrestling with the costs of higher education and the burden of debt.

However, Republicans have swiftly criticized these actions, particularly given the timing, which aligns with the crucial midterm elections occurring in just over two months, NBC News noted.

Detractors argue that erasing the debt equates to a government giveaway favoring the affluent. They assert this move is "unfair" to individuals who have already repaid their loans or taxpayers who never pursued a college education.

Moreover, they contend that increased spending will worsen the ongoing issue of record-level inflation.

As estimated by the Federal Reserve, approximately 45 million Americans carry student debt, totaling over $1.7 trillion by the second quarter of 2022.

Those with smaller debt often encounter greater repayment difficulties, often due to incomplete degrees or degrees with lower earning potential compared to those with more substantial debt.

Republicans highlight that the median household income for individuals making student loan payments is $76,400, with only 7% of these households falling below the poverty line.

Joe Biden Student Loan Cancellation Timeline

A year ago, numerous student loan borrowers received the long-awaited news that a portion of their loan balances-up to $20,000-would be forgiven. Nonetheless, this relief has yet to materialize.

Joe Biden's announcement marked a significant milestone, following a period of deliberation within his administration regarding options for extending relief to borrowers, the INSIDER noted.

Biden expressed uncertainty about his authority to enact broad debt forgiveness. However, on August 24, 2022, his administration concluded that, under the HEROES Act of 2003, he possessed the authority to cancel student debt for federal borrowers in response to a national emergency-in this case, the COVID-19 pandemic.

Approximately a month after the debt relief announcement, applications opened for federal borrowers seeking reductions of up to $20,000 from their balances.

In weeks, 26 million borrowers submitted applications, of which 16 million were approved by the Education Department for relief.

However, the momentum stalled in November due to successful lawsuits supported by conservative groups that halted the implementation of the relief.

The cases eventually reached the Supreme Court, which, in June, ruled in favor of one case, leading to the negation of the debt relief initiative, disappointing borrowers.

Despite the Supreme Court decision, the Biden administration has initiated other reforms for borrowers, introducing an alternative process for comprehensive student loan forgiveness under different legislation.

The Education Department announced a renewed effort under the Higher Education Act of 1965 on the same day the Supreme Court overturned Joe Biden's student loan cancellation.

This strategy mandates the administration to navigate the negotiated rulemaking process. It entails periods of public input, hearings, and rounds of discussions with stakeholders to finalize a debt relief regulation.

This process is anticipated to extend for at least a year. While no precise timeline has been provided for implementing this new debt relief, officials have affirmed their commitment to expedite the process within the bounds of the law.

This article is owned by Latin Post.

Written by: Bert Hoover

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