Biden Would 'Happily Sign' a Bill Cancelling $10,000 in Student Debt If Congress Was Able To Pass the Measure, Psaki Says

President Joe Biden "would happily sign" a bill canceling $10,000 in student debt, according to White House Press Secretary Jen Psaki, who also indicated that the absence of student debt relief comes from congressional differences.

(Photo : Kent Nishimura / Los Angeles Times via Getty Images)
President Joe Biden speaks before receiving a booster vaccination shot for CoVID19 in the South Court Auditorium of the Eisenhower Executive Office Building.

Biden is Waiting on Congress to Act

In a recently published article in Newsweek, top Democrats have claimed that Biden can cancel the students' debt via executive action, despite the White House saying the president is waiting for Congress to act. Senate Majority Leader Chuck Schumer repeated his demand for Biden to cancel all students' college debts of $50,000 last week.

White House Press Secretary Jen Psaki said that Biden would happily sign a measure to forgive $10,000 in student debt if Congress passed it and sent it to the president. It has not occurred at this moment as the lawmakers are still figuring out the legal basis of Biden's authority to cancel students' debt.

Schumer said Biden Could Release an Executive Order But Pelosi Disagree

Senate Majority Leader Chuck Schumer said President Biden could give millions upon millions of student loan debtors a fresh lease on life with a stroke of his pen, without the need for legislative action or approval. Schumer was referring to an executive order.

If this happens, it will allow these Americans to finally purchase that home, pay for their children's education, and get started on establishing a small company or entering the field of their choice. It has the potential to spark a wave of economic activity that is now lacking in our nation, according to a report published in the Associated Press.

Meanwhile, Speaker of the House Nancy Pelosi has adopted a position similar to that of the White House, claiming that the president lacks the power to cancel student debts on his own without the authorization of Congress or without it discussed on the floor.

In fact, Biden requested that the Departments of Justice and Education examine whether he would have the authority to cancel student loan debt via executive action more than seven months ago, but the departments have yet to disclose their conclusions.

Calls To Cancel Student Loans Continue

While almost $10 billion in student loan debt has been forgiven since Biden entered office, many progressive legislators have called for more. The billions forgiven were described by Schumer as "a start in the right direction," but he added that "in the big scheme of things, it falls very, very short of what we need to see," according to a published article in Yahoo News.

Moreover, borrowers should see their amounts lowered or erased immediately if Biden takes executive action to cancel the debts, but judicial action may create delays. The House Democrats have pushed to add a tuition-free community college proposal as a component in the Build Back Better Act, but their razor-thin majority may prevent the idea from making it into the final $3.5 trillion bill.

Furthermore, even as it continues to call on Congress to enact legislation to assist borrowers and their families, the Biden administration is considering if it may take measures to offer student debt relief via executive action.