White House Backtracks on Student Loan Debt Relief Within 24 Hours

US President Joe Biden participates in a CNN town hall at the Pabst Theater in Milwaukee Wisconsin

But that's exactly what President Joe Biden said during a CNN town hall on Tuesday. But NBC News reports he did indicate that he was willing to move forward with a downsized version of that plan, saying, "I understand the impact of debt, and it can be debilitating".

Recently, Sen. Elizabeth Warren(D-MA), Rep. Ayanna Pressley (D-MA), and Senate Majority Leader Chuck Schumer (D-NY) held a press conference in support of a resolution calling on Biden to cancel up to $50,000 in student loan debt using executive authority. Democrats involved in the push claim that the president has the executive power to do so.

The dispute among Democrats highlights an early intra-party rift opening under the new administration over a liberal policy proposal.

"Broad cancellation of Federal student loan debt will provide immediate relief to millions who are struggling during this pandemic and recession, and give a much-needed boost to families and our economy", the attorneys general wrote. The Act was reauthorized several times (and amended) over the ensuing decades. "We will keep fighting".

Those latter proposals are widely embraced by Democrats. Using this supposition as a reason not to offer widespread, comprehensive loan forgiveness is truly head-scratching. Through these efforts, we know that students who attend for-profit schools are disproportionately likely to suffer dire consequences from the Federal student loans they obtain to pay their tuition. In May of past year, 9% of borrowers who attended public schools, 7% of borrowers who attended private, nonprofit institutions and 24% of borrowers who attended private, for-profit schools were behind on their loan payments. Entire generations of working class kids were encouraged to go into more debt under the guise of elitism.

At a CNN town hall meeting in Wisconsin Tuesday, Mr.

No argument that that families making less than $125,000 should get to send their kids to state schools for free, but this does nothing for the millions of Americans who are now drowning under massive amounts of student loan debt because they sought an education.


"We can have both", she said.

The president had proposed that the government shouldn't forgive the debts of borrowers from elite schools, like Harvard, Yale and Penn-a comment that clearly incensed Ocasio-Cortez. It may also create a unsafe incentive for students who otherwise wouldn't have taken out loans to do so, with the hope the government would step in and forgive them, creating a downward spiral, Flores-Lagunes said. We've got the *Senate Majority Leader* on board to forgive $50k. "Biden's holding back, but numerous arguments against it just don't hold water on close inspection", she said.

Biden qualified his answer by saying "It depends on whether or not you go to a public university or a private university".

Without missing a beat, Biden replied "I will not make that happen". "Progressives are not going to split with him or rock the boat too hard".

Biden later reiterated that he supports eliminating $10,000 in debt, but not $50,000. There's a legal consideration there, as I think everybody agrees, there's a policy consideration.

Signed into law in 1965 by then-President Lyndon B. Johnson, the HEA began as part of Johnson's "Great Society" program for the objective of "strengthen [ing] the educational resources of our colleges and universities and to provide financial assistance for students in postsecondary and higher education". They're not only a danger to the taxpayer's purse, but to individual freedom as well.

Rachel Bucchino is a reporter at the National Interest. "That was vintage Joe from Scranton".

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