Canceling a student loan could make you forgive a student loan, but ignore this major problem completely

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The student loan forgiveness might make you forgive your student loan, but it completely ignores this major problem.

Here’s what you need to know.

Student loans

Does the president have the unilateral power to order the cancellation of student loans by decree? It is the legal question that can determine if you get the cancellation of a student loan. President Joe Biden has called on the US Department of Education to conduct a legal review of the president’s power to write off student loan debt. This review could answer that legal question, as well as other potential recommendations on how much student loan debt, if any, to write off, who qualifies, and when student loan cancellation might take. location.

It is somewhat strange that the cancellation of student loans has been reduced to a legal issue. After all, supporters of student loan cancellation say student loan cancellation is a necessary weapon to fight disparities, save young people from a mountain of financial ruin, and pave the way for more Americans to get married, start a family, buy a house and save for retirement. However, Congress apparently cannot pass legislation to cancel student loans. So they put pressure on the president to cancel student loans. Progressives want Biden to write off up to $ 50,000 in student loans, but he’s repeatedly said he thinks $ 10,000 in student loans is the right amount. Naturally, this debate over large-scale student loan forgiveness could spark a political storm. In his first two months in office, Biden canceled $ 2.3 billion in student loans last month, which is within his legal authority and was done in a targeted fashion. First, Biden canceled $ 1 billion in student loans for 72,000 student borrowers, and second, he canceled an additional $ 1.3 billion in student loans for 41,000 totally and permanently disabled borrowers.


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