Stock Groups

Expert floats way for Biden to cancel student debt without Congress

[ad_1]

Bloodua | Istock | Getty Images

Senate Majority Leader Chuck Schumer of New York and Sen. Elizabeth Warren, D-Mass., are among those calling on President Joe Biden to bypass Congress and forgive student debt through executive order.

Schumer often said that “all you need is a flick of a pencil.”

According to recent research, there may be another method the White House could cancel student loans without having to pass legislation. analysisMark Kantrowitz, a higher education expert.

Although the details may be a bit fuzzy, Kantrowitz claims that federal student loans can be forgiven by regulatory changes made by the executive branch. In particular, Kantrowitz argues that the one most popular program in government, called “the”, could be cancelled. Income-Contingent Repayment PlanThe law may be altered to allow broad cancellation.

Find out more from personal finance:
Why a federal gas tax holiday won’t save consumers much
Inflation is costing households $300 more a month
Why the Fed raises interest rates to combat inflation

An ICR Plan usually erases the borrower’s debt within 25 years. But Kantrowitz suggests that a few tweaks could speed up this process. While borrowers might need to submit an application, Kantrowitz doesn’t think that this will be a major roadblock.given the strong financial incentive of loan forgiveness.”

The White House could theoretically block any changes made by Congress, however Kantrowitz is skeptical that there will be sufficient support.

He stated that to contest it they would require two-thirds support from the Senate and the House. This is unlikely. Kantrowitz, however, suspects that loan forgiveness by executive order will face legal challenges.

If regulations issued by Biden’s administration by the U.S. Department of Education were published before Nov. 1, then they might be in effect by July 2023 or even sooner.

A request by the White House for information on Kantrowitz’s analysis was not answered.

Democrats, advocates and lawyers have searched for ways to allow the president of the United States to forgo student loan debt. Experts agree that Congress will not pass legislation due to the inpopularity of loans cancellation among Republicans.

Warren will be running for the Democratic Presidential Primary in 2020. vowed to forgive student loans in the first days of her administration. Her announcement included this information. an analysis written by three legal experts, based at the Project on Predatory Student Lending at Harvard Law School, who described such a move as “lawful and permissible.”

Luke HerrineFirst made the acquaintance of Dr. Judith – a Ph.D. candidate in Law at Yale Law School. argument in 2017 that the Education Department could cancel student debt.

Herrine explained that “it’s basically like the power that an prosecutor has determine whether to charge somebody.” A prosecutor may believe that somebody has committed an offense but choose not to file a case against them. In the same way, the government may decide to stop enforcing people’s obligations.

Recent pollNearly 66% of potential voters support Biden’s cancellation of some or all student loans. Over 70% of Black and Latino voters support cancelling student debt.

From March 2020 onwards the coronavirus pandemic first hit the U.S. and crippled the economy, most federal student loan holders have been given the option to not pay their monthly bill. They also have no interest to accrue.

This reprieve, which has been granted five times during the current public health crisis, has affected more than 25,000,000 Americans. It will expire on May 2.

Ron Klain (White House chief of staff) stated that earlier this month, the Biden administration wanted its debt cancellation decision to be made before the payment back-on.

Klain stated, “The president will look at student debt prior to the expiration of the pause or he’ll prolong the pause.” said on the podcast “Pod Save America.”

Recently, the Education Department orderedCompanies that serve federal student loans should not notify borrowers of the possibility of their payments being restarted.

[ad_2]