Perhaps the largest issue is that without a comprehensive plan to make college affordable, wiping out existing debt would only be a temporary fix. Other potential drawbacks of debt cancellation are independent of whatever legal mechanism might be used to enact it. And without the thorough planning that passing debt cancellation through Congress could provide, addressing student debt by executive order risks saddling borrowers with a big tax bill.

One potential drawback of canceling student loan debt by executive order is that it could open the door to lawsuits from loan lenders. Lawyers with the Legal Services Center of Harvard Law School call the proposal to cancel student debt by executive order ' lawful and permissible.' Other commentators dispute such an order's legality, saying it represents an overreach of executive power. Unintended Consequences of Canceling Student Debt Additionally, with more than a quarter of Americans behind on loan payments, canceling student debt could help provide relief for millions of households. According to a 2017 report from the Federal Reserve System, students making payments on loans for their education paid almost $400 per month, on average. Proponents of debt forgiveness say a generous write-off would stimulate the economy. The lawyers affirmed that 'the Higher Education Act gives the Secretary of Education the authority to cancel student loan debt.' The call to circumvent Congress using the power of the executive order first came by way of a legal memo written by a group of Harvard Law School professors. After decades of climbing college tuition rates, and various federal proposals to aid struggling students, student debt forgiveness has never been closer to becoming reality.īiden could forgive up to the first $50,000 of every student borrower's federal loan debt by executive order - one of several immediate directives that Democrats are urging Biden to issue, bypassing what could be an evenly divided or majority-Republican Congress. The moment President-elect Joe Biden walks into the Oval Office on January 21, he could be ready to sign one of the biggest education policies in history: canceling most student loan borrowers' debt.

Critics say broad debt forgiveness by order has drawbacks and blind spots.Biden could cancel federal student loan debt for most borrowers by executive order.

Democratic leaders and organizations urge 'the next president' to help students.

The Public Ivies, Little Ivies, and Other Ivy League Equivalents.

Student loan executive order