The Department of Education, under President Biden’s regime, announced a controversial move on Friday to cancel $39 billion in federal student loans for over 800,000 borrowers within the next month.
Education Secretary Miguel Cardona hailed the decision as a “historic step” to correct past failures in the system and ensure debt relief for those who deserve it, the Post reports.
“This Administration will not stop fighting to level the playing field in higher education,” Cardona stated, emphasizing the administration’s commitment to addressing issues within the student loan system.
Nancy Pelosi Said the President Cannot Forgive Student Loan Debt
In a video widely available online, and recorded during a weekly press conference in July of 2021, Nancy Pelosi said:
People think that President of the United States has the power for debt forgiveness. He does… pic.twitter.com/nonnjSc6cj
— justredpillme (@justredpillme) July 7, 2023
However, Republicans were quick to express their outrage over the loan forgiveness plan. Just weeks after the Supreme Court overturned an earlier Education Department scheme to cancel $400 billion in student debt, critics accused the Biden administration of attempting to circumvent the court’s decision for political gain.
Representative Virginia Foxx (R-NC), Chair of the House Education and Labor Committee, condemned the move, stating, “The Biden administration is trampling the rule of law, hurting borrowers, and abusing taxpayers to chase headlines.” Foxx criticized the administration for prioritizing its own political agenda over taxpayers’ interests and the integrity of the legal system.
Since taking office, the Education Department, under Biden’s leadership, has already forgiven more than $116.6 billion in federal debt held by over 3.4 million students. The newly announced plan targets borrowers who have been making loan payments for either 20 or 25 years, depending on the timing of their loan and their chosen repayment plan.
President Biden’s request to Education Secretary Cardona in June to explore loan forgiveness options aligned with his campaign pledge to address the student debt crisis. The cancellation of loans is made possible by the Higher Education Act of 1965, fulfilling Biden’s commitment to take action in this area.
The Supreme Court’s recent 6-3 decision prompted the Biden administration to explore alternatives for discharging federal loans. While the larger loan forgiveness plan based on a 2003 law was tied to a national emergency, the administration argued that the financial constraints caused by the ongoing COVID-19 pandemic constituted an emergency situation.
