Sen. Elizabeth Warren, a Democrat from Massachusetts, speaks as the whip of the majority of the House, James Clyburn, a Democrat from South Carolina, right, listens on Tuesday, July 23, 2019, during a press conference on the cancellation of student loan debts in Washington , DC, USA.
Andrew Harrer | Bloomberg | Getty Images
With Democrats controlling the White House and Congress, forgiving student debt is a better blow to becoming a reality for millions of Americans.
However, there are obstacles.
Will debt cancellation be a priority for the young Biden administration, which appears in a duel and unprecedented economic and health crises?
“They probably created a hierarchy of legislation that they consider important,” said Richard Semiatin, an assistant professor at the American University. “This is unlikely to be at the first level.”
During the campaign, President-elect Joe Biden promised to forgive the $ 10,000 student debt for all borrowers in response to the economic pain caused by the pandemic and the rest of the loans for those who attended public colleges or, historically, black colleges and universities. and earn less than $ 125,000 a year.
“We expect to keep that promise,” said Persis Yu, director of the Student Loan 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 forgiveness?
Some Democratic senators are pressuring Biden to bypass 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, Senate Majority Democrat Chuck Schumer, DN.Y., is asking Biden to forgive $ 50,000 for each debtor on the first day of his presidency. “All you need is a pen shot,” Schumer said in December. – You don’t need Congress.
Not everyone agrees. Experts say Biden would probably face lawsuits if he were to cancel the debt on his own.
And now that Democrats have won a majority in Congress, the legislative path may seem more hopeful. However, there is a long way to go from hope to loans that see their debts reduced or eliminated.
Even with the two Senate seats the Democrats took in Georgia, the party has just won a majority and will need elected Vice President Kamala Harris to step in to garner 51 votes against the Republican 50.
Not all Democrats may participate in the forgiveness of student debts, and even if they do, Senate rules of procedure generally require legislation to get 60 votes. It will be difficult to get nine Republicans in support of a debt jubilee.
“With democratic control of the 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 avoid these rules. A legislative process once a year, called budget reconciliation, will allow Democrats to pass bills with their simple majority. That’s how Democrats came up with the final version of the Affordable Care Act in 2010. That’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 use reconciliation procedures only three times in 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 especially true during a pandemic.
Reconciliation legislation must also be linked to budget changes, and senators can try to block any provisions they claim are not.
Given all the uncertainty of trying to pass legislation to forgive student debt, lawyers and Democrats continue to ask Biden to administratively cancel loans, saying lenders can’t afford to wait for improvement.
“President Biden has a historic opportunity to improve the lives of tens of millions of American families struggling in the midst of a national crisis,” said Seth Frotman, who served as student loan ombudsman at the Office of Consumer Financial Protection. during the Obama administration.