Samuel Case, FISM News
On the campaign trail, Joe Biden promised to cancel up to $10,000 of federal student loans per borrower. Those who had put hope in that promise, however, were met with disappointment when the Washington Post reported that student loan forgiveness is not included in Biden’s 2022 budget proposal. The full proposal is set to be released on Thursday.
The budget will not include President Biden’s campaign pledge to enact a public option to create a government-run health insurance program, or his pledge to cut prescription drug costs . . . Other ambitious Biden campaign pledges — from raising the estate tax to forgiving significant amounts of student debt — are also expected to be left out of the new budget plan . . . .
Last week Biden signaled his discomfort with the idea of extensive loan forgiveness. In an interview with The New York Times the President said, ‘The idea that you go to Penn and you’re paying a total of 70,000 bucks a year; and the public should pay for that? I don’t agree.”
Though it’s not in the budget, loan forgiveness may still be in the cards for the Biden administration. In March, White House Press Secretary Jen Psaki said “the President continues to call on Congress to cancel $10,000 in debt for student loan borrowers. That’s something Congress could take an action on, and he’d be happy to sign.”
Apart from Congress, Biden may attempt student loan forgiveness through an executive order. Higher education expert Mark Kantrowitz told CNBC, “President Biden is still waiting for the U.S. Department of Justice and the U.S. Department of Education to report on their review of his legal authority to forgive student loan debt through executive order.” He added, “only after he receives that report, which I expect will find that he does not have the legal authority, will the ball be in Congress’ court.”
As a result of the pandemic, both President Trump and President Biden paused federal loans payments as a form of economic relief. Payments are set to resume this October.