Biden says he won't forgive $50000 of student loan debt for borrowers

President Joe Biden at town hall in Pabst Theater in Milwaukee Wisconsin

President Joe Biden reiterated on Tuesday night that he does not believe he has the authority to cancel $50K in student loans by executive order. Elizabeth Warren, D-Mass., to forgive up to $50,000 in student debt after the president proposed a more limited $10,000 cancellation plan.

In a joint statement on Wednesday, Senate Majority Leader Chuck Schumer and Democratic Sen.

The group suggested on Friday that borrowers were plagued by insurmountable debt amid a vicious churn of what they called "predatory for-profit colleges that lure students with false promises".

But Ocasio-Cortez and others argued there is no reason the wealthiest nation on the planet can't both fund early childhood education and forgive some of the combined $1.8 trillion in student loan debt saddling more than 40 million Americans.

The letter comes as the White House has defended its hesitancy over canceling student debt beyond $10,000 over concerns that Biden may not have the authority to do so.

"And No. 2, I'm prepared to write off the $10,000 debt, but not [$50,000]", Biden said, according to The Hill.

"The President continues to support the cancelling of student debt to bring relief to students and families", tweeted White House Press Secretary Jen Psaki. Biden to use the Higher Education Act to cancel up to $50,000 in student loan debt for federal student loan borrowers.

"What the President has told Senators (Chuck Schumer of New York) and (Elizabeth Warren of Massachusetts) is that once his team is in place at the Justice Department - and they are not, of course they're, they're not confirmed at this point - he will ask them to conduct a legal review of his authority to act by executive action in conjunction with a policy review from his Domestic Policy Council on how executive action debt relief, if any, should be targeted", Psaki said at a White House briefing. Opponents claim that if Biden cancelled student debt without the approval of Congress, it could open him up to lawsuits and "set the tone" for an antagonistic relationship with Congress going forward. Others say, however, that the higher figure is more inclusive of students who have racked up larger debts - most outstanding student loans are between $20,000 and $25,000 - and would reduce the racial wealth gap and boost the economy. "The case against student loan forgiveness is looking shakier by the day".

Biden's platform has included at least partial student loan forgiveness.

Bishop's research focuses on the burden of debt on Black borrowers, who are often the ones hardest hit by student debt. Struggling borrowers are unable to obtain meaningful relief in bankruptcy because under current law, Federal student loans are not dischargeable except under extremely narrow circumstances.

And so her advice for President Biden the next time he's asked about this issue? "But how can we fulfill that dream when debt is many people's only option for a degree?"

Among college students who borrow money to attend college, the average student graduates with an average of almost $29,000, according to the most recent analysis by the Institute for College Access & Success.

Biden's hesitancy to take dramatic action on student loan debt is particularly cruel when one considers the magnitude of the problem.

The opposing argument is that cancelling student debt is a type of federal spending, and only Congress has "the power of the purse". An Education Department spokesperson on Wednesday declined to say whether the Trump administration's memo remained in force at the agency or whether it would be rescinded.