Schumer asks Biden to write off student loan debt with executive order
Minority Senator Chuck Schumer urged President-elect Joe biden to bypass Congress and undo billions of dollars in student loan debt, arguing that it should be part of a larger RDF-type program implemented in its first 100 days White House.
Schumer, DN.Y., said Biden should adopt a plan which he exposed earlier this year alongside Senator Elizabeth Warren, D-Mass., under which the president could use executive power to immediately write off up to $ 50,000 in student debt per borrower. Biden has called for the cancellation of $ 10,000 in student loan debt as part of a larger coronavirus relief program.
“Get rid of student debt,” Schumer said in an interview with Ink. “I have a proposal with Elizabeth Warren that the first $ 50,000 of debt be defeated, and we believe Joe Biden can do it with the pen rather than with legislation.”
Student loan stocks have doubled over the past decade, reaching nearly $ 1.7 trillion. About one in six American adults owe money on federal student loan debt, which is the largest amount of non-mortgage debt in the United States. It has been cited as a major obstacle to the “economic life” of the people by Federal Reserve Chairman Jerome Powell.
Schumer said Biden could use existing executive power under the Higher Education Act to order the Education Department to “modify, compromise, waive or release” student loans. He estimated that this would offer full forgiveness to over 75% of borrowers and partial forgiveness to over 95%.
Such sweeping executive action would almost certainly face a legal challenge, and it is not clear whether it could survive. Critics have argued that the use of such power goes beyond the president’s authority granted by Congress. Canceling student loan debt would also add to the country’s already inflated national deficit, which totaled a record $ 3.1 trillion in fiscal 2020.
According to Schumer, Biden should take other steps in his first 100 days in office, including strengthening unions, changing the tax code to benefit workers rather than businesses, passing a vast bill on infrastructure and the adoption of a “big strong and aggressive climate program”. during his first 100 days in power which “takes account of racial injustice.”
“This is an ambitious and daring program,” said Schumer. “My job is to get as many things through as possible and get the votes, which obviously I can’t snap my fingers and do. I want the boldest program we can get through.”
Experts said that Biden’s ability to keep up with his agenda, including raising taxes on wealthy Americans, could be severely curtailed if the GOP retains control of the Senate, a battle that hinges on two January races in Georgia. Democrats would need to win both races to secure a 50-50 tie; in this scenario, vice president-elect Kamala Harris could vote to advance the Democratic agenda.