Student Loans: Biden Confirms Students Loans Will Restart in May, but Congress Wants Memo on Student Loan Cancellation Released

The Biden administration has officially confirmed that the student loan payments will resume in May. However, the members of Congress want a memo on student loan cancellation released now. Here is all the information you are looking for:

Student Loans

The message from more than 80 members of Congress is that they want that memo on student loans to be released now.

They sent a letter to Biden and encouraged him to cancel around $50,000 of student loan borrowers before the tenure of student loan relief ends on May 1, 2022.

Additionally, they want President Biden to release a memo that he had asked the U.S. Department of Education to draft last year. The memo is about the legal authority of the President to enact wide-scale cancellation of student loans through an executive course of action.

Student Loan Scams, What You Need to Know

Senate Majority Leader Chuck Schummer and Senator Elizabeth Warren signed the letter that asked for the release of the memo publicly. The letter highlights how crucial the canceling of student loans is for borrowers and their families.

According to the reports, the U.S. Department of Education had had the memo ready since April 5, 2021, when they were asked to draft it originally.

The intra-party conflict between the progressive and moderate Democrats – specifically about the wide-scale student loan cancellation problem – may not play out well for Democrats in the elections scheduled in November.

Legal Memo on Student Loan Forgiveness

A heavily redacted memo about the legal authority of the President to forgo the student loans unilaterally was revealed through a Freedom of Information Act request. The memo is seven pages long and is addressed to U.S. Secretary of Education; Miguel Cardona.

Student loans
Student loans

“The Secretary’s Legal Authority for Broad-Based Debt Cancellation” memo is written by the acting general counsel of the U.S. Department of Education. The date on the memo is found to be April 5, 2021.

However, till today the memo, which was reportedly requested by President Biden according to White House Chief of Staff, Ron Klain, has not been released publicly. Ironically, this memo is supposed to be for the public’s benefit, yet it has not come out to the public.

If the legal memo is completed, it might address various issues. It does not just give legal authority to President to enact student loan cancellation unilaterally without the requirement of authorization from Congress.

It also includes recommendations for student loan forgiveness, strategies to better provide current student loan relief after the temporary forbearance period ends. It also has points about who qualifies for student loan cancellation and how much student debt to cancel. The memo provides arguments from both sides; for and against the student loan cancellation.

Mom Pays Off $72k in Student Loan, Credit Card Debt Using These Tips

White House Has Confirmed Student Loan Payments Will Restart From the Beginning of May

Even after being warned by Congress about how millions of students are struggling and are practically unprepared to pay their student loans, the White House has officially confirmed that student loan payments are restarting from May 1, 2022.

The White House emphasized that President Biden supports $10,000 of student loan forgiveness, just as he has supported this cause since the time of his campaign for Presidential Candidateship.

Although President Biden is more than ready to forgive up to $10,000 for millions of students across the country, still Congress has not passed any legislation. Once Congress passes the student loan relief, President Biden would be delighted to sign this bill into law.

President Biden has not promised any broad-scale student loan cancellation, but he indeed is exploring the matter through administrative channels, as reported by the White House.

The latest update has come as a warning, and students should prepare to pay off the loans starting from May 1, 2022. Be ready with all your options, so you do not struggle at the last moment. We can do nothing but hope for the wide-scale cancellation of loans, but let’s be ready on our end for any news that might not be in our favor. 

Student Loan Payments Again Get Delayed: Will the Biden Government Forgive These Debts?

LEAVE A REPLY

Please enter your comment!
Please enter your name here