President-elect Joseph R. Biden Jr. President Trump, through an executive actionalready extended the so-called administrative forbearance through Dec. It had been scheduled to expire on Sept. Biden takes office in late January. A spokeswoman for the Education Department declined to comment. Congress may feel pressure to act before the year ends, policy experts said, and it could include an extension in a new stimulus package or other legislation.
The higher-education platform Mr. Biden campaigned on was noticeably silent about a proposal that progressives say is ripe for executive action: outright cancellation of some student debt. Some legal scholars and key lawmakers believe that The Meaning Of Education In Education gives the president the power to use an executive order to direct the Education Department to broadly discharge debts for any or all student borrowers. Others disagree and believe such an action would face legal challenges. But Mr. Biden has never publicly endorsed the idea, and two people involved in his transition-planning discussions said his views had not changed.
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Without legislative action by Congress — which is unlikely if Republicans retain control of the Senate — broad student debt cancellation seems improbable. Biden stirred excitement among student borrowers with a tweet in March that endorsed a pandemic-relief proposal from Ms. However, that proposal called for Congress to authorize Educatioj relief — and so far, it has not. Without legislative action, Mr. Roughly 8. One plan demands 20 percent.
Student debt cancellation
Under Mr. Biden also promised to go further: Erased debts are generally taxed as income, but he said he planned to change that. Making a permanent change to the tax code would require legislation, but tax experts say there are other ways to eliminate the tax penalty.
The enormous problems associated with the federal Public Service Loan Forgiveness program are well documented. The program was created in to attract workers to low-paying government and nonprofit jobs in exchange for debt forgiveness; after a decade of on-time monthly payments, any remaining debt is wiped away. Educatioon borrowers have to be in the right type of repayment plan and have the right kind of federal loan, all while working in a qualifying position — and only 2. The legislation has been introduced in both the House and Senatebut with only Democratic support. Beyond strengthening the existing program, Mr.
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Biden said he would create yet another forgiveness plan for workers in schools, government and other nonprofit organizations. After several notorious for-profit chains collapsed, including Corinthian Colleges and ITT Technical Institute, hundreds of thousands of people flooded the Education Department with claims. Education Secretary Betsy DeVos has fought them at every turn and let many applications languish for The Meaning Of Education In Educationuntil federal judges in multiple cases ordered her to speed things up.
Eileen Connor, the legal director of the Project on Predatory Student Lending, which is representing borrowers in the California case, said she hoped the Biden administration would revive the spirit of the borrower-defense program and grant relief to hundreds of thousands of students who were defrauded. A new education secretary has the authority to overturn past denials, Ms. Connor said, and create new standards for adjudicating the 80, applications that are still pending.
Borrowers have to file a separate legal proceeding, and lawmakers have toughened the rules over the past several decades.]
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