Rep. Ilhan Omar, Democrats ask Biden to release memo detailing his power to cancel student loan debt



Chelsey Cox, USA TODAY
Fri, October 8, 2021

WASHINGTON — Eighteen members of Congress, led by Rep. Ilhan Omar, D-Minn., signed a letter Friday addressed to President Joe Biden and Secretary of Education Miguel Cardona urging the release of a memo on the administration's authority over student loan debt cancellation.

"Decades ago, Congress voted to authorize the executive branch to cancel federal student loans. Federal student debt can be canceled with the 'flick of your pen.' This authority is already being put to use, as it is currently being used to cancel the interest owed on all federally-held student loans," the members wrote.

The Education Department has already forgiven debt for a select group of borrowers — including 1,800 victims of for-profit college fraud and borrowers with disabilities. The administration also introduced a sweeping overhaul of the Public Service Loan Forgiveness Program and extended a pause on loan repayments until the end of January 2022 amid the pandemic.


But Democrats in Congress argue Biden can eliminate student loan debt with an executive order. Not doing so, they say, will perpetuate racial and economic inequality.

Student loan debt affects Black borrowers disproportionately compared to white, Asian and Latino borrowers. Black borrowers also earn less over time and are less likely to pay off their debt and most likely to fall behind on payments.

"With a single signature, you can improve the economy, create new jobs, transform the lives of 45 million Americans, narrow the racial wealth gap, and maintain the trust of voters," the members wrote.

Months ago, progressives pushed for forgiveness on at least $50,000 for borrowers, but the letter released Friday calls for total student loan debt cancellation.

"Now it is time for you to honor your campaign pledge and use this authority to cancel all student debt," the letter states.

Biden pledged to cancel $10,000 in debt for all borrowers during the 2020 presidential campaign. And earlier this year, he asked the Justice and Education Departments to produce a memo on the president's authority to cancel student loan debt. Neither department has released findings.

According to the letter, members of the House and Senate say Biden is authorized to broadly cancel debt through section 432(a) of the Higher Education Act, which says the Secretary of Education can "enforce, pay, compromise, waive, or release any right" to collect on federal loans.

In 2019, Omar, Sen. Bernie Sanders, I-Vt. and Rep. Pramila Jayapal, D-Wash., introduced the Student Debt Cancellation Act to cancel all public and private student loan debt.

Nearly 44 million Americans owe about $1.7 trillion in student loans, according to Federal Reserve data.

Reach out to Chelsey Cox on Twitter at @therealco.

This article originally appeared on USA TODAY: House Democrats send letter to Biden administration on student loans