Biden at odds with Democratic leaders over lawmakers’ call to cancel up to $50,000 in federal student debt – The Washington Post
President Biden is butting heads with key Democrats after he rejected Senate Majority Leader Charles E. Schumer’s call to cancel up to $50,000 in debt held by federal student loan borrowers.
“I will not make that happen,” Biden told a borrower inquiring about the proposal at a town hall hosted by CNN in Milwaukee Tuesday. He later said: “I’m prepared to write off a $10,000 debt, but not 50 because I don’t think I have the authority to do it.”
Schumer (D-N.Y.) disagrees. On Wednesday, he put out a joint statement with Sen. Elizabeth Warren (D-Mass.) reiterating their belief that the Biden administration could use the same legal authority to cancel debt that President Donald Trump’s administration used last year to temporarily waive interest on federal student loans during the pandemic.
“Canceling $50,000 in federal student loan debt will help close the racial wealth gap, benefit the 40 percent of borrowers who do not have a college degree, and help stimulate the economy,” the pair said. “It’s time to act. We will keep fighting.”
Biden’s comments arrived weeks after White House press secretary Jen Psaki said the administration is reviewing whether the president could issue an executive order to cancel student debt, a commitment Schumer and Warren noted in their statement Wednesday.