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With Democrats controlling the White House and Congress, student debt forgiveness is better at becoming a reality for millions of Americans.
Still, there are obstacles.
Will debt cancellation be a priority for the young Biden administration, which is taking place amid duels and unprecedented economic and health crises and crises?
“They’ve probably created a hierarchy of legislation that they consider important,” said Richard Semiatin, an assistant professor at American University. “He’s unlikely to be at the first level.”
On the campaign trail, President-elect Joe Biden vowed to forgive $ 10,000 in student debt for all borrowers in response to the economic pain caused by the pandemic and other loans for those who attended public schools or historically at black universities and colleges. earn less than $ 125,000 a year.
“We look forward to fulfilling that promise,” said Persis Yu, director of the Student Loan Borrower Assistance Project at the National Consumer Law Center, a nonprofit advocacy group.
A recent poll found that 58% of registered voters support student debt cancellation.
Administrative or legislative pardon?
Some Democratic senators are pressuring Biden to avoid Congress and cancel the debt on his own.
Senator Elizabeth Warren, D-Mass., Recently described student debt forgiveness as “the most effective economic stimulus available through executive action.” Meanwhile, the top Senate Democrat, Chuck Schumer, DN.Y., is asking Biden to forgive $ 50,000 per borrower on the first day of his presidency. “All you need is a pen touch,” Schumer said in December. “You don’t need Congress.”
Not everyone agrees. Experts say Biden would likely have lawsuits if he decides to cancel the debt on his own.
And now that Democrats have won a majority in Congress, the legislative path may seem more hopeful. Still, there is a long way to go from hope until borrowers see their debts reduced or eliminated.
Even with the two Democratic Senate seats collected in Georgia, the party only got the majority and will need Vice President-elect Kamala Harris to intervene to gather 51 votes against the 50 Republicans.
Not all Democrats may be involved in compensating student debt, and even if so, Senate rules of procedure often require legislation to get 60 votes. It will be difficult to get nine Republicans to support the debt jubilee.
“With democratic control of government, Republicans are likely to reaffirm their interest in the federal deficit and government spending,” said Laurel Harbridge-Yong, an associate professor at Northwestern University.
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However, there may be a way to circumvent these rules. An annual legislative process, called budget reconciliation, will allow Democrats to pass bills with a simple majority. That’s how Democrats pushed for the final version of the Accordable Care Act in 2010. It’s also how Republicans passed their massive tax cuts in 2017.
But there are limits to this method, said Ryan D. Doerfler, a law professor at the University of Chicago. “Democrats can only make use of reconciliation procedures three times over the next two years,” he said. Because this process can only be used once a year, there is usually a lot of competition over what to include, and this will be particularly true during the pandemic.
Conciliation legislation must also be related to budget changes and senators may try to block provisions they deem not to be.
Faced with all the uncertainty of trying to pass legislation to forgive student debt, advocates and Democrats continue to ask Biden to cancel loans administratively, saying borrowers cannot afford to wait for relief.
“President Biden has a historic opportunity to improve the lives of tens of millions of American families struggling amid a national crisis,” said Seth Frotman, who was a student loan advocate at the Consumer Financial Protection Bureau during the Obama administration.