There’s been a lot of factually inaccurate talk about student debt cancellation today, so let’s clear a few things up.
President Biden has the clear authority to liberate 43 million Americans from the crushing burden of student debt. He needs to use it.
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President Biden has the clear authority to liberate 43 million Americans from the crushing burden of student debt. He needs to use it.
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The Higher Education Act gives the Secretary of Education the power to “enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired.”
In other words, it gives him the power to cancel any student debt held by the federal government.
In other words, it gives him the power to cancel any student debt held by the federal government.
What’s more, regulations issued by the Justice and Treasury Departments give the Secretary the clear authority “to compromise a debt, or suspend or terminate collection of a debt,” arising from a Title IV loan program.
Title IV loans make up over 90% of student loan debt.
Title IV loans make up over 90% of student loan debt.
In fact, President Biden has already used this authority.
Just last month, he cancelled more than $500 million in student debt held by nearly 18,000 students defrauded by ITT Tech.
Just last month, he cancelled more than $500 million in student debt held by nearly 18,000 students defrauded by ITT Tech.
Cancelling student debt isn’t just the right thing to do -- it’s the smart thing to do.
According to leading economists, cancelling student debt would create over 1 million jobs per year.
According to leading economists, cancelling student debt would create over 1 million jobs per year.
By freeing people from the burden of student debt, we enable them to start families, buy homes, launch small businesses, and fully engage in our economy.
Student debt cancellation is also the single most effective way to reduce the racial wealth gap. Black and brown borrowers are forced to borrow more, at higher rates, than their white counterparts.
Cancelling student loan debt would close the Black-White wealth gap by 28 points.
Cancelling student loan debt would close the Black-White wealth gap by 28 points.
Asking “how we’re going to pay for it” misses the point.
We should be asking how we’re going to pay for the status quo.
We need to look at student loan cancellation as an investment, one that will pay dividends that benefit us all - including people who didn’t attend college.
We should be asking how we’re going to pay for the status quo.
We need to look at student loan cancellation as an investment, one that will pay dividends that benefit us all - including people who didn’t attend college.
Student debt cancellation is good policy, good politics, and something that @POTUS has the power to do with the stroke of his pen. We need him to use it.
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