Here is the edited student loan forgiveness memo that could determine whether Biden cancels student loans

Here is the edited student loan forgiveness memo that could determine whether President Joe Biden cancels student loans.

Here’s what you need to know.

Student Loans

A new Freedom of Information Act request revealed a heavily edited memo on the president’s legal power to unilaterally terminate student loans. The seven-page memo entitled “The Secretary’s Legal Authority for Broad-Based Debt Cancellation” is addressed to the US Secretary of Education Miguel Cardona, was written by the acting General Counsel of the US Department of Education and is dated 5/2021. That happened and That is what it means for your student loans.


Student Loan Waiver: What Kind of Memo is this?

In April, White House Chief of Staff Ron Klain said the president had asked the Department of Education to conduct a legal review of the president’s ability to unilaterally cancel student loan debt without further approval from Congress. Klain said the review would take several weeks. However, seven months later, neither the White House nor the Department of Education released the full memo. The student loan cancellation memo could include:

Last month, MP Ilhan Omar (D-MN) and others urged Biden and the White House to post the student loan termination memo, but that did not happen.


Termination of the student loan: what that means for your student loan

Like first from the. reported New Yorker, Debt Collective – a membership-based union – received the redacted documents from the US Department of Education through a Freedom of Information Act request. According to the documents, the student loan waiver memo may have existed since February 2021 and an updated draft could have been completed in early April 2021. (The full, edited memo and emails can be read here). Based on these documents, Debt Collective and others have made several allegations about the memo on social media and what it means for your student loans. Here is a snapshot of those demands and what they really mean for your student loans:

Claim # 1: A student loan cancellation memo has existed since April and possibly early February.

The documents show an edited April memo entitled “The Secretary’s Legal Authority for Broad-Based Debt Cancellation”. The documents also refer to an update of a February memo. It is important that the memo is blackened out so that there is no way of knowing the contents of this apparent memo at this point in time. It is not surprising if the Department of Education investigated this issue in April, February, or earlier. It is also likely that the Biden campaign has been investigating the issue of bulk student loan cancellation, suggesting that there has been earlier analysis in the past few years. (Here’s who is just qualifying for student loan remission). The Trump administration has also investigated this issue and concluded that the president has no unilateral, legal and executive power to cancel an unlimited amount of student loan debt.


Claim # 2: The title of the apparent memo “clearly indicates that the White House knows Biden has authority to cancel student loan debt”

The title of the memo – “The Secretary’s Legal Authority for Broad-Based Debt Cancellation” – is just that, a title. The title of the memo does not say that the Minister of Education has the legal authority to cancel all student loan debt. Rather, the title of the memo is simply the topic itself, not a closure. (Student loan waiver is not available for these student loan borrowers.)


Claim # 3: The White House plays politics

Debt Collective and others say the White House delayed the release of this memo of largely student loan waiver and it was all down to politics. However, it is unclear whether there will be a definitive memo. There’s no evidence that the Biden administration has been sitting on a memo for months while student loan borrowers and Congress await the Education Department’s conclusions. (Here’s how to get a student loan waiver if you don’t work in the public sector). As mentioned earlier, the Trump administration concluded that the president has no legal authority to cancel all student loan debt without further approval from Congress. This is also the mainstream conclusion based on the US Constitution and the separation of powers clause. House spokeswoman Nancy Pelosi (D-CA) has said the same thing, and Biden has said repeatedly that he doesn’t believe he has the authority to cancel student loan debt without Congress. At an event held at City Hall last month, Cardona said “Talks are ongoing” about student loan forgiveness. We will continue the talks about the loan waiver – a full loan waiver. ”(Student loan forgiveness may still be alive). Therefore, according to the Minister of Education, the White House and the Department of Education are still examining student loan issuance and the work is still ongoing. Hence, it does not appear that the Biden administration is playing policy on student loan granting.


Claim # 4: “We never need, and never have had, a memo to tell us something that we have known for years. Biden must now use his executive powers to clean up all student debt.

It is not a slam dunk that Biden has executive powers to cancel all student debts. (However, Biden announced these important changes in student loan issuance). The phrase “Biden can do it with the stroke of a pen” can be repeated as many times as you want on television, print, and social media. However, it doesn’t change the law, nor does it mean that Biden will suddenly cancel all student loan debt. Better assume it won’t happen and then be pleasantly surprised when it does. A memo is not binding; it has no legal pattern. The president can follow the recommendations of the memo or partially or categorically reject the recommendations. As Congress and the White House know, any attempt to cancel the debt of any student loan would face legal challenges that would likely delay the implementation of large-scale student loan cancellation by months, if not years. A court would likely make the final decision on the president’s legal authority to act unilaterally without Congress issuing a bulk cancellation of student loans. This is likely one reason why Biden has focused on targeting student loan cancellation. Biden has canceled $ 11.5 billion in student loans since taking office as president.


Student loan: next steps

The Department of Education may or may not publish the student loan termination memo. The Department of Education can accept or reject the Trump administration’s conclusions. The President can accept or reject the recommendations of the Ministry of Education. The Biden administration has canceled student loans at an unprecedented rate. The student loan cancellation rate may be significantly higher or lower than you prefer, but there is currently no evidence that Biden plans to cancel all student loan debt. Biden never supported this proposal, nor did the Senate Majority Leader Chuck Schumer (D-NY) or Senator Elizabeth Warren (D-MA). The bottom line: don’t expect massive student loan forgiveness. The Biden administration will continue to cut student loans – billions of dollars more, perhaps – but it might not be yours.

Because of this, it is imperative that you have a clear game plan for paying off student loans. Make sure you know all of your options including these smart ways to pay off student loans:


Student Loans: Related Literature

Here’s who is eligible for student loan waiver right now

How to get approval for student loan issuance

These borrowers are not eligible for student loan waiver

How to get student loan issuance

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