Biden failed to follow through on 2 promises to cancel student debt

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  • Biden has pledged in his campaign to write off $ 10,000 in student debt per person and write off student debt at HBCUs and public colleges.
  • As president, he has yet to follow through on any of those promises.
  • The DOE has already written off the debt of defrauded borrowers and disabled borrowers.
  • See more stories on the Insider business page.

So far, President Joe Biden’s Department of Education has acted to address the $ 1.7 trillion student debt crisis in the country by canceling, among other things, the debt of certain borrowers defrauded by for-profit schools and borrowers with disabilities.

On his first day in office, Biden’s first move to tackle student debt was to extend the break on federal student loan repayments through September. Since then, Education Secretary Miguel Cardona has taken three distinct stages deal with student debt: he forgave the debt for around 72,000 borrowers defrauded by for-profit schools, he forgave the debt for more than 41,000 borrowers disabled, and more recently it has broadened the scope of the payment break to 1.14 million borrowers with private loans.

But as president, Biden has yet to follow through on two campaign promises he made to voters on student debt cancellation. The more than 81 million people who voted for him also voted for two promised student debt relief measures that have yet to be passed, if ever they will be.

Regarding other actions Biden could take on student debt cancellation, a DOE spokesperson told Insider that the department “is working in partnership with colleagues from the Department of Justice and Home Affairs. Blanche to review options for debt cancellation “.

Here’s what Biden said during the election campaign about how he would tackle the student debt crisis:

During his campaign, Biden promised to immediately write off $ 10,000 in student debt per person. In one word on Nov. 16, Biden said student loans were delaying borrowers and that the $ 10,000 student debt cancellation “should be done immediately.”

Biden campaign website said the president would work with Democrats to “allow up to $ 10,000 in student debt relief per borrower” as part of COVID-19 relief, but the $ 1.9 trillion stimulus package of dollars sign in March did not include it. He also said he would support proposed legislation to write off $ 10,000 in student debt, but Senator Elizabeth Warren of Massachusetts said in a report. press call last month, it’s long and expensive, and although she has legislation to do it, there’s no reason Biden can’t use executive action to provide the immediate relief he had promised.

Warren campaigned on a larger number, calling for the cancellation of $ 50,000 in debt per person, and she and Senate Majority Leader Chuck Schumer urged Biden to do so. At a CNN town hall in February, Biden said he does not have executive power write off up to $ 50,000 in student debt per person, but said he was prepared to write off $ 10,000.

“My point is: I understand the impact of debt, and it can be debilitating,” Biden said at mayor. “I am ready to cancel the debt of $ 10,000 but not $ 50 [thousand], because I don’t think I have the power to do it. “

Biden has since asked the Department of Justice and the Education department to review its power to use executive action to cancel student debt, indicating that it can keep this promise. It can go even further, as the White House press secretary said in early April that the cancellation figure of $ 50,000 was not excluded. But nearly three months after starting his presidency, he has yet to act on this point.

Another plan Biden had to deal with student debt during his campaign was to forgive all federal student loans related to undergraduate tuition fees for borrowers from public colleges and universities earning up to $ 125,000 per year, and this would also apply to historically black private colleges and universities (HBCUs) and institutions in the minority service.

Debt forgiveness of borrowers who attended HBCUs would help close the racial wealth gap in the student debt crisis. Insider previously reported that 86.6% of black students take out federal student loans, compared to just 59.9% of white students.

This plan was modeled on Senator Bernie Sanders of Vermont and Representative Pramila Jayapal of Washington. College for All Act, introduced in 2017, which would make public colleges and universities tuition-free and reduce student debt.

“If we are to be successful in a highly competitive global economy and have the best educated workforce in the world, public colleges and universities must become free for working families and we must significantly reduce student debt,” said Sanders in a statement.

The Education Department has yet to release any information on this plan.

The ministry did not provide Insider with a timeline for the other cancellation measures.



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