Biden set to BREAK campaign promise to cancel $10,000 student loan debt05/24/2021
JOE Biden is set to BREAK his campaign plans for student debt cancellation as Democrats remains divided over school plans.
Ahead of the release of the budget next week, the President is said to have grown “suspicious” about wiping out the $10,000 loans.
The shift in policy is a bitter blow for the more than 42 million Americans who currently have the debt in place.
The President had previously pledged to cancel up to $10,000 in federal loan debt before he entered the White House, adding that it “should be done immediately” upon taking office.
Democrat party members Elizabeth Warren and Alexandria Ocasio-Cortez, had also pressured Biden further by pushing for policies that would forgive up to $50,000.
However, in an interview with the New York Times on Friday, Biden said that he now grown ‘suspicious’ of the debt as he threatens a u-turn.
He said: 'The idea that you go to Penn and you're paying a total of 70,000 bucks a year and the public should pay for that? I don't agree.”
Biden is said to have voiced skepticism about whether he can legally cancel student debt through an executive order, and he has asked Education Secretary Miguel Cardona to draft a memo on his authority to do so.
The White House has stated that Biden wanted to see Congress pass legislation to wipe away student debt, rather than through executive order.
In the past, Biden has proposed canceling up to $10,000 in college debt—and all debt for those who attended a public college or a Historically Black College and University.
According to an economic plan, he said: “Individuals working in schools, government and other non-profit settings will be automatically enrolled in this forgiveness program; up to five years of prior national or community service will also qualify.”
In March, White House press secretary Jen Psaki said they were still "exploring options" around student loan policy.
"The President continues to call on Congress to cancel $10,000 in debt for student loan borrowers," she said.
"That's something Congress could take an action on, and he'd be happy to sign."
Yet, the Presidents latest comments suggest that that this may not be the case ahead of the budget next week with democrats said to be split over the decision.
It also casts into doubt whether he will follow up on a number of promises made about key economic strategies that was made in his first budget outline.
According to The Washington Post, this could include a public option for health coverage and a plan to cut prescription drugs.
The Budget will be officially revealed at the end of next week.
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