If you’re looking for a student loan cancellation in President Joe Biden’s Build Back Better plan, you won’t find it.
Here’s what you need to know.
The Build Back Better plan – Biden’s economic and social plan in the aftermath of the Covid-19 pandemic – has been slashed from $ 3.5 trillion to $ 1.75 trillion. Both before and after the reduction of the legislative package, you will not find any mention of large-scale student loan cancellation. Not from the president. Not from Congress. At the same time, there has been plenty of speech in recent weeks on the need to cancel student loans and cancel student debt now:
“President Biden can write off student loan debt with a ‘stroke of a pen’.” – Senate Majority Leader Chuck Schumer (J-NY)
“In fact, we have nothing to do in Congress. The President of the United States has the power to cancel student loan debt on his own. “- Senator Elizabeth Warren (D-MA)
“We know the president can do it with the stroke of a pen… Cancel student debt. “- Rep. Ilhan Omar (D-MN) said Business intern.
“…[T]here are more opportunities than ever to pressure Biden to cancel student loans … he needs to step up his executive action game and show his commitment to delivering to people. – Rep. Alexandria Ocasio-Cortez (J-NY) on Instagram.
Student loans: where is the forgiveness of student loans?
Despite all the rhetoric about student loan cancellations and the importance of giving student loan relief to distressed borrowers, you won’t find any large-scale student loan cancellations in any major legislation. (Student loan forgiveness is not available to everyone, but this plan is available now). It was not in the first stimulus package. It was not in the second stimulus package. It was not in the president’s budget. It was not in the infrastructure bill. It’s not in the Build Back Better plan. Democrats control the White House, the US Senate, and the US House of Representatives. It is a unique triumvirate of political power. Yes, it’s a 51-50 majority in the US Senate, with Vice President Kamala Harris capable of breaking the tie. However, Democrats control the political and political agenda. House Speaker Nancy Pelosi (D-CA) and Schumer control the legislative agenda. However, despite congressional and White House control, Democrats have repeatedly decided not to focus on canceling student loans. (Here’s who qualifies for the student loan waiver right now). When given the opportunity to push forward legislation on providing full student loan relief, as they had promised from behind the podium, they actively decided not to do so. Their rhetoric does not match their action. (These student loan borrowers will not be eligible for their student loan exemption).
Student loan cancellation: rhetoric vs reality
Despite this power to focus on important issues, Congress has repeatedly chosen not to reverse any student loan cancellations. Instead, they waged an intra-party war between the progressives and the president over an issue – the cancellation of student loans – that the president has actively supported more than any other president in the history of the United States. Yes, the approach and amount of student loan cancellation is not what progressives in Congress want. (Here’s who qualifies for the student loan waiver right now).
- Biden preferred a targeted cancellation of student loans; progressives want full-scale student loan cancellation.
- Biden would support up to $ 10,000 of large-scale student loan cancellations per eligible borrower; progressives want up to $ 50,000 of student loan cancellations per eligible borrower.
- Biden wants Congress to pass legislation, which he said he would gladly sign; progressives want Biden to sign a decree.
- Biden doesn’t think he has the executive power to write off everyone’s student debt; progressives say he can do it with the stroke of a pencil.
During negotiations on the Build Back Better plan, Democrats fought for a plethora of social programs – free community college, expanding the child tax credit, universal kindergarten and many other priorities. However, nowhere in this long list of economic and social agendas will you find the slightest mention of a student loan forgiveness. (How to get approved for a student loan forgiveness). If the forgiveness of student loans is such a high priority, one would think that progressives in Congress would refuse to vote for the Build Back Better plan unless the forgiveness of student loans of up to $ 50,000 is included in the legislation. Did it happen? No. Instead, progressives focused on one strategy: pressuring Biden to cancel student loans through an executive order. For his credit, Biden canceled more than $ 11.5 billion in student loans, including $ 4.5 billion for public servants, $ 5.8 billion for totally and permanently disabled student loan borrowers and $ 1.5 billion for student loan borrowers who have been misled by their college or university. . Biden announced major changes to the cancellation of student loans earlier this month. In contrast, Schumer did not hold a vote in the US Senate on canceling large-scale student loans. Why? Congress cannot pass the cancellation of the student loan. Republicans do not support him and neither do many Democrats.
Student loans: next steps
Student loan relief from the Covid-19 pandemic ends on January 31, 2022. Don’t expect Congress or the President to announce a massive student loan cancellation before then or anytime soon. Student loan repayments will resume from February 1, 2022. If progressives in Congress want student loan cancellation, they should either find a way to pass a law. Or, they should focus on working within their party and across party lines to find a bipartisan solution to help students and their families meet the cost of higher education. (This could be even more important than canceling a student loan). The high tuition fees do not distinguish between parties. Members of both parties want to help Americans prosper. Rather than fighting within parties, Democrats can act on their rhetoric and make an impact on the communities most affected.
With the end of student loan relief, make sure you understand these popular ways to save money with your student loans: