The cancellation of student loans is intensifying. Here’s what to expect next
The move marked the fifth round of student loan cancellations issued by the Education Department since President Joe Biden appointed Education Secretary Miguel Cardona. Three of these towers were intended for defrauded students, while one tour was intended for borrowers with disabilities. The overhaul of the PSLF also makes it clear that the Biden administration is more aggressive on the student loan front than previous administrations. Simply put: student loan cancellation is escalating.
But more forgiveness could be on the way.
So what options for forgiveness would that leave Biden with?
Biden’s preference during the campaign was that the student loan cancellation go through an act of Congress. But his party’s slim majority in the US Senate makes it difficult to pass. Look no further than the “free community college” measures that were left out of the reconciliation bill on Tuesday in an attempt to appease the tastes of moderate Senator Joe Manchin. If more forgiveness does not come by decree or congress, that means the only remaining avenue is more announcements by the Department of Education. However, the agency’s power is limited to extending or fine-tuning existing forms of borrower protection – barely mass progressives seek forgiveness.
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