President BidenJoe BidenSenate Republicans Urge CDC To Lift Public Transport Mask Mandate AOC Said It Doubts Biden’s Victory Would Have Been Certified If GOP Was In Control Of House Overnight Defense: Intel Releases Highly Anticipated UFO Report | Biden meets with Afghan President | Conservatives attack Milley PLUS faces an intense backlash from progressive lawmakers after saying on Tuesday he would not sign a measure to write off up to $ 50,000 in federally held student debt per borrower through executive action .
At a CNN town hall, Biden rejected the debt cancellation plan proposed by top Democratic lawmakers and leading progressives, including the Senate Majority Leader. Charles schumerChuck Schumer Innovation and Competition Act is progressive policy Infrastructure deal: major climate victory that fits more with reconciliation bill Democrats seek to calm nervous left MORE (NY), sen. Elizabeth warrenElizabeth WarrenSenate plants seed for bipartisan climate solutions White House adviser to MSNBC host: Biden deal ‘was not a photoshoot’ Republicans raise early concerns over infrastructure deal by Biden PLUS (Mass.) And Rep. Alexandria Ocasio-CortezAlexandria Ocasio-CortezAOC said she doubts Biden’s victory would have been certified if the GOP controlled the house The Memo: Harris’s border trip leaves questions unanswered On the money: Biden announces bipartisan deal on infrastructure, but Democratic leaders expect more (NEW YORK)
“I won’t make it,” Biden said when asked if he would support $ 50,000 in student loan forgiveness.
He reiterated his previous support for debt relief of up to $ 10,000 per borrower, but expressed concern that higher total remission through executive action would disproportionately help the rich and could violate the law.
“I think at this time of economic pain and strain that we should eliminate the interest on accumulated debt, # 1. And # 2, I’m willing to write off the $ 10,000 debt, but not [$50,000]. “
Biden had previously expressed his opposition to a $ 50,000 rebate plan and the White House has repeatedly stated that the president would prefer to ease student debt through an act of Congress. But Biden’s public and unequivocal refusal to go as far as progressives want it to spark the president’s first big fight with the left since taking office.
“A sea of student loan debt is holding back 43 million borrowers and weighing disproportionately on black and brown Americans,” Schumer and Warren said in a joint statement Wednesday. The two reintroduced a resolution earlier this month calling on Biden to write off up to $ 50,000 per borrower, a bill they first introduced in September.
” It’s time to act. We will continue to fight, ”they said.
There are approximately 43 million Americans who owe a total of $ 1.6 trillion in student loans to the federal government. While progressives have argued for years that canceling student debt is key to reducing inequality and closing the racial wealth gap, moderates like Biden have embraced it as a way to mitigate the damage of the recession. coronaviruses.
The battle over how far to go on student debt cancellation has been brewing since Biden’s election in November and intensified when Democrats took control of the Senate in January.
The slim Democratic majority gave Biden the chance to push his favorite plan – a bill, not an executive order, to forgive up to $ 10,000 per borrower – through Congress.
But progressives had pressured Biden to aim higher and use executive action long before the Democratic takeover of the Senate.
Schumer, who is set to face a major challenge from the left in 2022, said in November that the new president has the power to unilaterally eliminate $ 50,000 in debt per borrower. Warren in December went even further, insisting that Biden had a “moral obligation” to follow the plan she proposed with Schumer.
Biden is open to a debt relief order, but he suggested Tuesday that there could be legal limits on how much he could forgive. The president also said he was not comfortable with wiping off debt held by graduates of prestigious universities and preferred to revamp pre-existing forgiveness programs based on public service.
“The idea that I’m telling a community I’m going to forgive billions of dollars is dead for the people who went to Harvard, Yale and Penn… is it going to be forgiven rather than using that money to provide early education for young children from disadvantaged backgrounds? says Biden.
While Biden’s refusal to take debt relief higher has disappointed progressives, his rationale infuriated them.
“Who cares what school someone went to?” Entire generations of working class children have been encouraged to take on more debt under the guise of elitism. This is wrong, ”Ocasio-Cortez tweeted Wednesday. “Nowhere does it say we have to trade early childhood education for a student loan forgiveness. We can have both.
Despite increasing pressure from progressives, it could be months before Biden decides to cancel the student loan.
Biden extended the hiatus on federal student loan payments and accrued interest until September, relieving some of the urgency to tackle debt.
White House press secretary Jen psakiJen PsakiOvernight Finance: Republicans warn Biden about infrastructure deal | White House pushes back criticism | Biden Sinema phones | Consumer spending stagnates in May, personal incomes drop White House: ‘Absurd’ for GOP to challenge two-lane infrastructure approach The Hill’s 12:30 report – Presented by Facebook – Biden helps negotiate deal bipartite on PLUS infrastructures said on Wednesday that the previously announced legal review of his debt forgiveness power would only take place after the designated attorney general Merrick garlandMerrick Garland Florida Church Leaders Arrested in Capitol Riot The 12:30 p.m. Report from The Hill – Featured by Facebook – Biden Helps Negotiate Biparty Infrastructure Deal Justice Department Sues Georgia In subject of the law on the vote PLUS was confirmed by the Senate, raising fears of further delays in the cancellation of the debt.
“What the President told Sens. Schumer and Warren is that once his team is in place at the Department of Justice … he will ask them to conduct a legal review of his authority to act by executive action,” Psaki said.
“There is a legal consideration there, as I think everyone agrees, and there is a political consideration, and once that is concluded he will decide the way forward,” a- she added.
Biden’s legal authority to alleviate student debt is not established law. While progressive legal analysts say the higher education law gives Biden the ability to order the education secretary to reset student loan balances, conservative lawyers say debt cancellation exceeds the limits of the law.
Former Secretary of Education Betsy DeVosBetsy DeVosErik Prince involved in promoting experimental COVID-19 vaccine: Report that the Biden administration is reversing Trump-era policies that hampered investigations into student loan companies that DeVos ordered to testify in part of a lawsuit for the cancellation of student loan PLUS debated whether it had the power to write off student loan debt amid the onset of the coronavirus pandemic, but lawyers for the Trump administration determined that would be illegal. Their analysis, however, is not legally binding and lawyers for the Biden administration might come to a different conclusion.
Psaki also suggested Wednesday that Biden would limit debt relief based on the borrower’s income and education – a far cry from the larger one-sided erasure backed by progressives.
“He has previously said that relief over $ 10,000 should be targeted based on the borrower’s income, depending on the type of debt in question – public schools vs. private schools, graduate schools vs. undergraduate – obviously, he said. there are a lot of considerations involved, ”she said.
Even if Biden determines he has the power to write off student debt by executive order, he’s still likely to take the backlash from progressives depending on the scope of his forgiveness plan.
“We have the * Senate Majority Leader * on board to forgive $ 50,000. Biden is holding back, but many of the arguments against it just don’t hold water after close inspection, ”Ocasio-Cortez tweeted.
“We can and must do it. Keep pushing! “