As the coronavirus pandemic continues to have a major impact on the financial stability of Americans, new questions about student loan forgiveness have arisen. Specifically, Forbes has calculated the probability of President Donald Trump canceling all federal student debt in an effort to stimulate the economy and give himself an edge to win the election against former Vice President Joe Biden. At this time, many outlets have reported that Trump is trailing Biden in numerous polls, with student loan debt forgiveness one thing that could provide him an advantage.
However, Forbes notes that Congressional Republicans — as well as Secretary of Education Betsy DeVos — have not been overwhelmingly supportive of student loan debt measures in the past. Trump also has not been vocally supportive of widespread student loan debt forgiveness, but he has voiced support for one type of student loan forgiveness. Forbes reports that Trump has said that he supports student loan forgiveness through repayment plans that are income-driven. It should also be noted, that, while no long-term student loan debt plan has been worked out, Trump did sign an executive order that defers all student loan debt through Dec. 31, which comes after student loan deferment measures laid out by the Cares Act.
Senator Elizabeth Warren (D-MA) and Senate Minority Leader Chuck Schumer (D-NY) have now proposed a student loan forgiveness plan that would allow each borrower up to $50,000 of student loan debt forgiveness. The pair argues that has the power to cancel student loan debt under the Higher Education Act and through the Secretary of Education. "Trump & DeVos have blocked debt cancellation at every chance for public servants, defrauded students, & disabled veterans," Warren wrote in a tweet. "Here’s how I see it: if Trump won’t cancel up to $50,000 in student loan debt now, Dems are ready to act in 2021.
Student loan debt is exacerbating the crisis America is facing.— Chuck Schumer (@SenSchumer) September 18, 2020
Warren added, "Student loan borrowers were in crisis before COVID-19 plunged our economy into chaos. But the President already has the power to help families right now. [Senator Schumer and] I are introducing a resolution today calling for Executive Action to [cancel student debt]."