June 24, 2021

4 Ways That Biden Enacts Student Loan Cancellation

4 Ways That Biden Enacts Student Loan Cancellation

There’s still some hope that President Joe Biden enacts student loan cancellation.

Here’s what you need to know.

Student Loans

Student loan cancellation wasn’t included in Biden’s $6 trillion budget and it was also dropped from Biden’s infrastructure plan. However, despite the latest developments on student loan forgiveness, it’s still possible that Biden cancels student loans. Here are 4 ways you could still get student loan forgiveness:

1. Biden has legal authority and cancels student loans

Did student loan cancellation get cancelled? It may feel that way, given that there has been no wide-scale student loan cancellation. However, Biden has asked the U.S. Department of Education to conduct a legal analysis on the president’s ability to enact wide-scale student loan cancellation without further authorization from Congress. That analysis was expected “within weeks,” but that was nearly three months ago. While the Trump administration concluded that a president cannot unilaterally enact wide-scale student loan forgiveness by executive order, the Biden administration may reach a different conclusion. If the Education Department concludes that Biden has such legal authority, then Biden could proceed to cancel student loans. This is the easiest path to wide-scale student loan cancellation. Importantly, if Biden cancels student loans, it’s possible his action may be challenged in court, which could delay any implementation of wide-scale student loan forgiveness. While the Education Department can provide legal analysis, it would be non-binding as a matter of law absent determination from a court.

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