Biden Budget Omits Student Loan Forgiveness – Here’s Where It Goes In Washington In Case Of Relief
/https://specials-images.forbesimg.com/imageserve/60b153ef54ebfd9ae0ec4356/0x0.jpg?cropX1=0&cropX2=2740&cropY1=0&cropY2=1541)
Topline
The Biden administration’s $ 6 trillion budget proposal for fiscal 2022 is filled with progressive policy priorities, including free community college and universal family and medical leave, but funding for student loan forgiveness doesn’t has not been reduced.
US President Joe Biden May 13, 2021 in Washington, DC.
Getty Images
Highlights
After the Washington post reported last week, as the provision would likely be ruled out, Biden drew criticism from defenders for what they saw as a waiver of a campaign pledge.
Omitting the policy from the budget doesn’t necessarily mean it won’t happen, however, as Biden has expressed support for the $ 10,000 loan cancellation per borrower – if Congress passes it – and he has asked the education ministry to investigate its legal authority to cancel loans on its own, although this is seen as a long shot.
In addition, on Monday, the Ministry of Education ad that it began the process of revising the regulations on existing and smaller student debt relief programs, including income-tested loan repayments (followed by loan cancellations after a certain number of years); canceling public service loans; and defending borrowers against repayment, if, for example, they have been defrauded by their schools.
Large number
$ 1.7 trillion. This is the cumulative debt of student borrowers in the United States, according to data from the Federal Reserve Bank of St. Louis..
Crucial quote
Asked last week about the likely omission of student loan cancellation and other progressive budget priorities, White House Press Secretary Jen Psaki replied: “Does each thing [Biden] wants to be reflected in his presidency in the budget? This will not be the case. But that doesn’t mean he hasn’t committed to it, and that doesn’t mean he doesn’t have the desire to move forward all of those agenda items he spoke about in his joint session speech, and which he spoke about when he was running for president. The budget also omitted proposals to reform the U.S. unemployment insurance program and cut prescription drug prices, though it calls on Congress to cut drug costs, and Biden has expressed support for an overhaul. unemployment.
Key context
Although Biden has expressed support for legislation that would write off federal student loan debt of up to $ 10,000, it is far less than the $ 50,000 per person remission that progressives in Congress, including the majority leader. in the Senate Chuck Schumer (DN.Y.) and Senator Elizabeth Warren (D-Mass.) Support. In one interview with the New York Times published last week, Biden said he disagreed with the scope of the broader progressive proposals for canceling student loans. “The idea that you go to Penn and pay a total of $ 70,000 a year and the public should pay for it?” I don’t agree, â€he said.
Tangent
While student debt was not part of the $ 6 trillion proposal released by the White House on Friday, a number of other progressive policy priorities were included. Biden’s $ 1.8 trillion U.S. plan for families would provide two free years of community college and two free years of universal preschool, extend or make permanent tax credits for children or families that have been expanded by the US bailout in March, and it would establish paid family and medical leave programs. Of course, Biden’s budget is just a proposal: it’s ultimately up to Congress to enact any new spending into law.
Further reading
White House releases Biden’s $ 6 trillion budget – Here’s what’s in it (Forbes)
Biden won’t support phased student loan forgiveness plan, says (Forbes)
Democrats push for forgiveness of $ 50,000 student loans – Here’s where the resolution stands (Forbes)
Biden removes student loan forgiveness from last budget (Forbes)