Biden cancels another $415 million in student loans, but Bernie Sanders says all $1.8 trillion in student debt will be canceled

President Joe Biden has canceled another $415 million in student loans, but Senator Bernie Sanders says Biden should cancel all $1.8 trillion in student debt.

student loans

The latest student loan forgiveness news shows that Biden canceled $415 million in student loans for 16,000 more student loan loans. Biden has now canceled nearly $15.5 billion in student loans, the most of any president. Its recent student loan forgiveness benefits student loan borrowers who attended for-profit colleges. The US Department of Education has canceled $2 billion in student loans for 107,000 borrowers amid defenses against student loan repayments by borrowers. In addition to targeted student loan cancellations, Biden has extended student loan facilitation three times, resulting in savings of more than $75 billion in student loan interest. Despite these achievements in favor of student loan borrowers, Sanders (I-VT) believes this is not enough. According to Sanders, Biden should cancel all student loan debt.

“Good. Now cancel the remaining $1,883,214,046,704 for 44,984,000 other Americans still drowning in student debt,” Sanders tweeted in response to Biden canceling $415 million in student loans.

Sanders wants all student loan debt eliminated entirely

Sanders has proposed the complete elimination of student loans, including all private and state student loan debt. In contrast, Biden supports $10,000 in student loan cancellations. Senator Elizabeth Warren (D-MA) and Senate Majority Leader Chuck Schumer (D-NY) support cancellation of up to $50,000 in student loans. As a presidential candidate, Warren supported the foreclosure of student loans for 95% of student borrowers. Sanders was an active advocate of mass student loan cancellations during his tenure as president and has proposed similar legislation in the US Senate.

Critics say Biden hasn’t forgiven enough student debt

Proponents of a large-scale student loan freeze say the mass student loan forgiveness will boost the economy, relieve borrowers from a crushing burden of debt and provide resources to start a family, buy a home and save for retirement. While applauding the targeted cancellation of student loans, critics say Biden hasn’t canceled enough student debt. (Will student loan payments be deferred to 2023?). For example, $15.5 billion is less than 1% of approximately $1.8 trillion in outstanding student loan debt. They want Biden to use his perceived executive power to cancel most or all student loan debt. Sanders’ plan would cost $1.8 trillion, while Warren and Schumer’s plan would cost about $1 trillion. In contrast, Biden’s plan to call $10,000 in student loans would cost approximately $400 million. Biden has urged Congress to pass legislation to eliminate student loans, and he has said he would like to sign the law into law. However, Biden does not believe he holds such executive power without congressional approval. Importantly, Congress hasn’t even voted on a large-scale student loan cut.

(Student loan refinance rates are ridiculously low).

Student Loans: Internal fighting and lack of a clear message could hurt Democrats

Progressives in Congress are fighting for sweeping student loan easing. However, there are internal inconsistencies. Some Democrats want student loans to be eliminated altogether. Some want $50,000 in cancellation of a student loan. Others want $10,000 in student loan forgiveness. (Student loan cancellation reduced to $25,000). Still others in Congress will not support a large-scale cancellation of student loans. (Student loan forgiveness could be why Democrats will lose the midterm elections). Without a unified message, it’s hard to envision a clear path to victory. A better strategy would be to unite around a single plan and dollar amount. (Here’s who doesn’t get student loan forgiveness). If the president can’t call off student loans and progressives focus on passing mass student-loan ordinances, Congress should explore alternative avenues besides social media to implement their plan. If there is no support for the currently proposed cancellation of student loans, Democrats would benefit from finding a potential bipartisan plan that could attract moderates, conservatives and Republicans. Otherwise, their efforts may not reach the student loan relief they are fighting hard for.

As the end of the temporary student loan exemption approaches, please prepare for the resumption of student loan payments. Here are some popular methods to pay off student loans faster:

Student Loans: Related Reading

If Biden calls in student loans, that’s what will happen next

Here’s who doesn’t get student loan forgiveness

Will student loan payments be pushed back to 2023?

Biden should end student loan easing

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