Residents of Livonia and Detroit and other areas of Michigan may want to learn more about what is happening with the cancellation of student loans by President Biden. Under consideration is the canceling of $50,000 in student debt for many Americans. It has now been several months, and there is still no word.
According to Insider, President Joe Biden promised to wipe out student debt when elected. So far this has not happened.
The legality is in question
The White House is still reviewing if this is legal. It is six months after the election and, recently, the president said he may not have the legal ability to cancel $50,000 in debt by each borrower.
He asked the Justice Department to create a review, but so far there is no timeline as to when and if the debt will go away. The alternative for some students may be to consider personal bankruptcy. They may be unable to pay this debt as well as other bills.
Sides wrangle over the issue
An expert on student loans has stated that President Biden does not have the authority to do this. He says that legal reviews will show this fact regarding the Higher Education Act.
On the other hand, advocates for borrowers include the Student Borrower Protection Center, which protects borrowers’ rights, say that Higher Education Act makes it clear that the Education Secretary has the power to cancel the debt and help borrowers.
Sen. Elizabeth Warren and Senate Majority Leader Chuck Schumer both agree. Sen Warren has said that the president does not need Congress to act, he can sign the bill to cancel the debt with just a stroke of a pen. It is his legal right to do so.