student loan forgiveness Biden 2021

Student Loans

There are two major ways to cancel student loans. You can combine methods, find different methods, or call them by various names. There are currently two battles, varying on who succeeds, which may affect student loan forgiveness Biden and have a permanent effect on student loans. These are two battles:

Path #1: 

President Joe Biden (Executive Office) versus Senators Elizabeth Warren (Elizabeth Warren) and Chuck Schumer (Legislative Branch).

Path #2: 

Warren and Schumer (legislature) as opposed to the moderate Democrats and Republicans (legislature).

Path 1: Biden enacts student loan cancellation by executive order

When you read a tweet or heard a friend say, “Biden’s only need to cancel the student loan”, they pointed out the first way to cancel the student loan. If Biden cancels student loans of up to $50,000, 36 million people will cancel the entire amount of student loans. But it is not that easy. In addition to the political debate about the benefits of large student loan settlements, some essential legal matters and rules can determine whether and by whom student loans should be cancelled.

In short, this road is a battle between Congress and the President. There is no dispute on this route as to whether it is a wise procedure to cancel student loans or to help lots of student loan borrowers. Both parties have agreed that the cancellation of student loans is an excellent strategy to offer financial relief that dreams of financial aspirations and prevent future generations from rising debts. Biden, Warren and Schumer all provided instantaneous support for the cancellation of student loans. Though, the parties have differences on two main issues. One is the amount of student loan debt to be cancelled, and the other is the person who cancels the student loan.

Biden has taken action to commemorate him since he took office, allowing at least $2.3 billion in student loan debt. The United States has responded to the cancellation of Biden’s student loans in various ways. Such as, Biden cancelled a $1 billion student loan to 72,000 student loan borrowers. He also cancelled the $1.3 billion student loan provided to 41,000 borrowers with total and permanent disabilities.

In other words, Warren and Schumer hope that Biden, not Congress, will pass an administrative order to cancel student loans of up to $50,000 immediately. They cited the Higher Education Act of 1965, claiming that the president has the full lawful power to cancel student loans by “clicking the pen.” Biden disagreed with this and said he did not believe that he had the independent power to cancel student loans through administrative orders. To “resolve” this debate, Biden urged the U.S. Department of Education to oppose Biden’s legitimate authorization to cancel student loans through an official order. But there is a big challenge.

Critically, Biden hopes to cancel student loans in three methods. Therefore, if the cancellation of college student loans does not occur, Biden has other methods to assist more student borrowers in cancelling student loans.


It is too early to tell the Ministry of Education’s conclusion or whether Biden accepts the proposal. However, if Biden cancels student loans, he hopes to file a legal appeal, which may delay the cancellation of student loans.

Path #2: Congress cancels student loans through legislation

Warren and Schumer don’t intend to talk about this, but Congress is unlikely to approve the cancellation of student loans. Surprisingly, it appears that there are not enough votes to approve the mass forgiveness of student loans. At least 16 U.S. senators, including Warren and Schumer, would like to cancel student loans of up to $50,000. The 16 senators have signed a resolution calling on Biden to issue an official order to cancel student loans. Warren, who insisted on allowing large-scale student loans, held an unpredictable hearing in Congress on student loans and student loan cancellations. Throughout the trial, Warren called for the cancellation of student loans again and said dismissed Navient, one of the biggest student loan service providers in the United States, from Navient’s federal student loan proposal and Navient’s CEO, Jack Remondi, also be kicked out.

Despite the hearings, it is not clear whether the moderate senator will participate in her campaign. So far, the Republicans have not supported the cancellation of student loans; some moderate Democrats (not including $50,000) do support the cancellation of student loans. It is challenging because the Democratic Party needs all 50 Democrats to favour the cancellation of student loans to make the legislation law.

Conclusion: Congress will be the appropriate department for the government to cancel student loans. Though, it seems that there are not enough votes to pass the enormous student loan settlement bill. This confuses the Democrats because it is best to get forgiveness from the administrative order of student loans. But, this cannot be guaranteed.

Also Read:

Student loan amnesty review could mean this for cancellation of student loan

Biden student loan cancellation is becoming a clear

Cancellation of $1 Billion Of Student Loans By Biden Administration

Student loan cancellation: next steps

Is there any student loan cancellation? Preferably, Warren and Schumer want Congress to terminate student loans. Why? They can make laws based on their conditions, including who is eligible for student loan forgiveness and how much to amortize. Biden has suggested that Congress will sign a student loan settlement bill and send it to him. It includes the cancellation of student loans up to $50,000. It in itself advantages the Democrats in Parliament. But Biden also understands that Congress may not pass such a law. It is why Warren and Schumer encouraged Biden to act alone. It may be a difficult battle.

First of all, Biden does not assist in cancelling any amount of student loans through administrative orders. After the statutory review of the cancellation of student loans, Biden may change his mind, but his position is clear. Second, although advocates of student loan cancellation cited the literal meaning of the Higher Education Act, Congress has given officials unlimited power to cancel the student loan debts of individual borrowers, which is difficult to advocate. The parliament rarely renounces its power altogether but only transfers it to the government.

Second, if Biden agrees to cancel student loans, please remember that he has determined the scale and terms of student loan cancellation. This means that Biden, not Congress, can decide who can cancel student loans and the amount of student loan debt. Well, Schumer and Warren would like Congress to review the student loan cancellation clauses. But now, it seems that their best hope is Biden’s forgiveness for accepting student loans. This is his condition, not theirs.

As you assess your choices for student loan repayment, ensure that you believe these potential options:

  • Public service loan forgiveness
  • Income-driven repayment plans
  • Student loan refinancing

We at SLFA are keen to help you in student loan forgiveness from document preparation to hire an attorney for you.

Also Read:

A Complete Guide About Joe Biden Student Loan Cancellation

Will Biden forgive student loans?


Alex Gold

Alex Gold

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SLFA is a private company and does not claim to be affiliated with any Federal, State, or Local Government agencies. People with student loan debt have the legal right to use an attorney or process federal student loan documentation on their own behalf without paid assistance. Our mission is to provide people with the credit repair, knowledge, information, and document preparation service they need to deal with all the financial decisions to find what they need and return to life effortlessly.

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