Student Loan Review: Possible Scenarios And Other Details

Student Loan Borrowers

Joe Biden, the president of the United States of America, asked the associated officers to carry out a legal review. It was with regard to the student loan. President Biden approached Miguel Cardona, the secretary of education of the United States to carry out the work. The secretary was told to review the authority of the president. The motive behind this was to exercise the decision of Biden to enact the cancellation of the student loan. 

Student Loan: What Might Happen?

It is a given fact that the reports of the review will take a lot of weeks to get prepared. There is one important question that is going to be answered by the review. It is whether President Biden has the authority to go for the cancellation of student loans without the approval of others. Is it legally okay for him to do so only through an executive order in the absence of the authorization of the US Congress? 

Following are some scenarios that might take place potentially.

  1. Only Congress has the right to enact the cancellation of the student loan which is on a wide scale. 
  2. The loans can be canceled through an order.
  3. The loan in question can be canceled on the basis of the authorization of the US Congress.
  4. The cancellation of some of the student loans can be carried out by the acting president.

Ron Klain, the chief of staff of the White House, gave a statement with regard to the decision of the President. It was stated that the president will have a look at the legal authority as soon as the memo on the loan is received by him. Ron Klain added that President Biden will take his decision after considering all the issues of policy concerning the loan.