Biden Announced He Would Be Forgiving $20,000 In Student Loan Debt
The White House said Thursday that its one-time loan forgiveness proposal is on strong legal and financial footing, hours after a key Democratic lawmaker said the plan lacks congressional authorization.
In a letter to House Speaker Nancy Pelosi, Treasury Secretary Steven Mnuchin said the administration is confident it has “the legal authority to provide this relief.” Mnuchin’s assurance comes as Pelosi and other Democrats have questioned whether the Trump administration can unilaterally cancel student debt.
“The Department has reviewed the relevant law and determined that it has the legal authority to take this action,” Mnuchin wrote.
On Wednesday, Biden announced that he would be forgiving $20,000 in student loan debt for borrowers who went to college on Pell Grants. For those who didn’t receive Pell Grants, he would forgive $10,000. The plan applies to those who earn less than $125,000 a year.
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