NASFAA Mention: Student Debt Cancellation Tests Progressives' Sway Under Biden

"Joe Biden embraced progressive demands for student debt cancellation after he won the Democratic nomination. Whether he agrees to use executive authority to grant loan relief will test how much influence progressives hold in his administration," Bloomberg Law reports.

... "Even before the pandemic, Warren and Sen. Bernie Sanders (I-Vt.) called for broad debt cancellation as part of their respective presidential primary campaigns.

More moderate candidates balked at the proposals for universal debt cancellation, however. Biden initially focused on simplifying loan repayment, but after winning the Democratic nomination, announced a plan to clear undergraduate tuition-related debt for any student borrower making up to $125,000.

Biden also endorsed calls from Senate Democrats to clear up to $10,000 for every student borrower in response to the pandemic — less than what Warren proposed but enough to clear the entire balance of more than a third of borrowers. The Urban Institute estimates the proposal would cost $369 billion.

'I would expect there’s going to be some sort of loan forgiveness,' said Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators. 'It’s become too much of a signature issue at this point.'"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 11/10/2020

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