Schumer renews calls for Biden to write off $ 50,000 in student loan debt per borrower

Senate Majority Leader Chuck Schumer calls for a student loan forgiveness of $ 50,000 per borrower. (iStock)

Senate Majority Leader Chuck Schumer again urged President Joe Biden on Tuesday to write off $ 50,000 in student loan debt per borrower.

Speaking to Virtual summit on the state of student debtSchumer renewed his call for debt cancellation, saying Biden has the power to write off student loan debt through executive order.

“In a jiffy, President Biden alone, without any action or approval from Congress, could give millions upon millions of student loan borrowers a new lease of life,” he said at the summit. . “It would allow these Americans to finally buy that house, save on children’s education, start a small business, or get into whatever profession they want. It could spark a wave of economic activity that is lacking. to our country today. “

The cancellation of student debt would only apply to federal student loan borrowers. If you have a private student loan, you don’t meet the eligibility requirements. However, you may want to consider lowering the costs of your repayment plan by refinancing while interest rates fluctuate. near historic lows. Visit Credible to find your personalized rate and see how much you could save.

Pelosi and Warren disagree over Biden’s power to write off student debt

Some Democrats disagree on whether the president has the legal power to write off student loan debt through executive order. House Speaker Nancy Pelosi told a press conference in July that the Speaker does not have this authority, but may suspend payments or create a forbearance period.

“People think the President of the United States has the power to write off the debt,” Pelosi said. “He doesn’t. He can postpone, he can delay, but he doesn’t have that power. It should be an act of Congress.”

However, Senator Elizabeth Warren disagreed, saying earlier this month that Congress does not need to meet to pass student debt cancellation because it can be done by the president. .

“We actually have nothing to do with Congress,” Warren said at a press conference. to meet in September. “The President of the United States has the power to cancel student loan debt himself.”

Due to the extended federal student loan forbearance period, federal borrowers are not required to repay their loans until the end of January 2022. But those with private student loans that do not qualify for the freeze related to the COVID-19 could consider refinancing. to lower their monthly payments. Visit Credible to compare multiple student lenders at once and choose the one with the best rates for you.

Biden administration suspends decision to cancel student debt

Despite the views of Democratic lawmakers on what the White House should do to reverse the cancellation of student loans, Biden has yet to weigh in on what will be done.

Currently, the president has written off about $ 10 billion in student loan debt, which is more than any other president, according to the New York Times. This includes cancellation for many borrowers, such as those with permanent disabilities.

In April, the White House said Biden had asked the Department of Education to review its options to write off student loan debt. However, the White House also confirmed at the time that the president did not support the drastic cancellation of student loans over $ 10,000 per borrower without imposing limitations.

If you’re having trouble with your private student loans, which won’t qualify for possible loan forgiveness, consider refinancing your debt to lower your monthly payments. Visit Credible to speak to a student loan expert to get answers to all your questions and discuss your reimbursement options.

Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.

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