Will your student loans be canceled after the US Department of Education evaluates them?

Here is what you need to know.

Student loans

President Joe Biden has called on the US Department of Education to conduct a legal review of the president’s authority to eliminate student debt. The review may include at least some of the following:

The Department of Education, headed by US Secretary of Education Miguel Cardona, is expected to send a legal review to the president within weeks. “It looks at that legal authority,” said White House Chief of Staff Ron Klein, referring to Beiden. It looks at policy issues and makes decisions.

Cancellation of student loans – the problem is here

While the legal assessment of student loans and student loan cancellation is a reasonable next step, there is one obvious problem: Why does the US Department of Education conduct this legal review? The Department of Education has highly qualified and competent lawyers and policymakers who fully understand the legal and public policy components of student loan cancellation. Therefore, it is not a question of understanding the complexity of the matter or the ability to interpret the law. During the Trump administration, for example, the Department of Education also opted for a massive student loan. The Department of Education has issued a memorandum declaring that a president does not have the power to approve a student loan cancellation. Today, the Department of Education may accept or reject the non-binding note or reach an alternative conclusion.

The big question, however, is that the department – as part of the executive branch of the federal government – does not think so. What is the question Congress He thinks, and in particular, What did Congress think when it passed the 1965 Higher Education Act? Article 432 (a) of the 1965 Higher Education Act gives the Secretary of State “any right, right, right, right, wrong, right, right, right, right, right, right, right, right, right, right, right, right, right, right, right, right, right, right, right, right, right, right, right.” DNA) and Senator Elizabeth Warren (DMA) argue that there is no question that the president (through the Secretary of Education) has canceled student loans for all student loans. That provision is one of the main reasons why Democrats plan to cancel student loans of up to $ 50,000. Schumer suggested in the Senate floor that Congress could cancel student loans more than once. Opponents of student debt cancellation say Congress never intended to give the president unrestricted, uncontrolled power to cancel every student loan – and if Congress had thought so, Congress would have written it clearly in the bill, which Congress would not have done.

Student loan apology – this should be a substitute

When Congress enacted the 1965 Higher Education Act, it is unlikely that any member of Congress would owe 45 million student loans in one day a total of $ 1.7 trillion in student debt. At the very least, Congress intends to cancel at least some student loans for the president (through the Department of Education). Biden took action on that basis. Biden, for example, canceled $ 2.3 billion in student loans last month. First, Biden canceled $ 1 billion in student loans for $ 72,000, and second, $ 1.3 billion in student loans for 41,000 general and permanent disabled borrowers. Biden continues to seek targeted, fragmented student loans rather than a large-scale cancellation of student loans. Biden’s view is that it does not believe that one party has the power to approve a student loan cancellation without the consent of Congress. Biden wants to cancel $ 10,000 student loans immediately, and wants Congress to pass the appropriate law on student debt cancellation.

It may seem like the right choice for the Department of Education to conduct a legal review, as student loan cancellation falls under its jurisdiction. However, the necessary exercise is more Legislative Draft Analysis And Constitutional Interpretation. While the Department of Education can certainly conduct policy reviews and analyze the law, any of the following may be more appropriate for conducting a legal review:

  • White House legal counsel;
  • U.S. Attorney General; Or
  • An independent presidential commission comprising legal scholars and lawyers.

Alternatively, it would be useful for the Congress to learn more about the drafting of the 1965 Higher Education Act from a bipartisan working group, committee or subcommittee.

Student loan cancellation – next steps

Should there be a legal review of student loan cancellation? Yes. That is, a non-binding legal review can only go so far. Regardless of the legal review, only Biden will decide whether to continue the student loan cancellation and cancel the student loan. Biden may stand by his current position that he does not have the legal authority to cancel student loans, or he may change his position and cancel student loans together. That said, the final judge of this legal claim may not come from the executive or the legislature. Beware of legal challenges if Congress or President cancels student loans. This means that we may have an open branch of justice under the authority of the president, which may not only delay the cancellation of student loans, but ultimately solve the higher legal issue. Will your student loans be canceled? Ultimately, that depends on the president and Congress. In the meantime, here are some smart options to consider when saving your student loan repayment options

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