Representative Alexandria Ocasio-Cortez (DN.Y.) in an Instagram story Friday renewed calls for President Joe Biden to use his executive power to write off student loan debt.
In her comments, the congresswoman referred to President’s Build Back Better spending plan, which was successfully slashed by moderate lawmakers.
“I think given the BBB cut, there are more opportunities than ever to pressure Biden to write off student loans,” Ocasio-Cortez wrote.
She added that the “showdown” over student debt cancellation will come in late January 2022, when federal student loan payments are expected to resume.
Read on to learn more about the future of debt cancellation for student borrowers. And if you don’t know how to manage your private student loan debt, you can visit Credible to compare interest rates for private student loan refinancing without affecting your credit score.
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Biden “doesn’t need Manchin’s permission” to cancel student debt
The Biden administration needs the support of the moderates to pass its $ 1,000 billion spending bill, but Democratic lawmakers like Sens. Joe Manchin (DW.Va.) and Kyrsten Sinema (D-Arizona) continued to support the bill in hopes of lowering the final price. As a result, much of Biden’s curriculum was removed from the bill, including the tuition-free community college.
But progressives have argued that Biden’s campaign promise to write off student loan debt can be made by executive order rather than waiting for Congress to enact this legislation.
“He doesn’t need Manchin’s permission to [canceling student loans], and now that his agenda is thin, he needs to step up his executive action game and show his commitment to delivering for people, ”AOC wrote on Instagram.
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Lawmakers divided over Biden’s possibility of canceling student debt
Democrats disagree on whether the Biden administration can enact a loan cancellation law with the executive branch. Senate Majority Leader Chuck Schumer (DN.Y.) has said Biden can write off up to $ 50,000 in federal student loan debt per borrower “with the stroke of a pen” of the House, Nancy Pelosi (D-Calif.) argued that the president does not have the power to cancel student loans.
To get a clear answer on the cancellation of federal student loans, the White House said in April that it called on the Education Department to determine the president’s authority to write off student loan debt. The Ministry of Education was supposed to provide a note on the subject, but this note has not yet been made public.
Progressive lawmakers, including Rep. Ilhan Omar (D-Minn.), Urged Biden to “release the memo” by October 22, but the day passed without a response from the president.
12 LENDERS TO CONSIDER FOR STUDENT LOAN CONSOLIDATION
If you are considering refinancing your college debt, compare the interest rates from real private lenders in the table below. Keep in mind that refinancing your federal student loans makes you ineligible for certain debt relief protections like COVID-19 administrative deferral and federal student loan cancellation programs.
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Now is the time to consider your student loan repayment plan
It is still unclear whether a law on student debt forgiveness is in the works. Education Secretary Miguel Cardona said the Education Ministry and the Justice Ministry are continuing their conversations about the “large” cancellation of student loans. However, he added that student loan borrowers should still prepare for the resumption of federal payments in a matter of months.
Even though President Biden has said this is the “final extension” of the student loan payment hiatus, many borrowers have said a longer forbearance period is needed. You can verify the status of your loans on the Federal Student Aid (FSA) website.
If you can’t get back to your monthly payments by February 2022, consider your student loan repayment options like private student loan refinancing. Contact a knowledgeable loan officer at Credible to find out more.
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