Cedric Richmond insists Biden DOES have the legal authority to forgive student debt

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Cedric Richmond insists Biden DOES have the legal authority to forgive student debt

Democratic National Committee advisor Cedric Richmond on Sunday insisted that Congress had given President Biden the authority to forgive student loan

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Democratic National Committee advisor Cedric Richmond on Sunday insisted that Congress had given President Biden the authority to forgive student loans.

House Speaker Nancy Pelosi and even President Biden have in the past said that the executive branch does not have the authority to unilaterally cancel student loans. 

‘People think the president of the United States has the power for debt forgiveness. He does not,’ Pelosi. said last year. ‘He can postpone, he can delay, but he does not have that power. That has to be an act of Congress.’

Asked by Fox News what has changed, Richmond, a former director of the White House Office of Public Engagement, insisted, ‘Well, Congress acted.’

‘If you look at the legislation that allowed President Trump and President Biden to delay loan repayment its the same legislation, it’s the same legislation that allows him to forgive $10,000 worth of debt and $20,000,’ Richmond said. 

Biden, last year, said that he was ready to forgive $10,000 from the White House but did not believe he had the authority to forgive $50,000, as progressives have pushed for, saying ‘I don’t think I have the authority to do it by signing a pen.’

Democratic National Committee advisor Cedric Richmond on Sunday insisted that Congress had given President Biden the authority to forgive student loans

Democratic National Committee advisor Cedric Richmond on Sunday insisted that Congress had given President Biden the authority to forgive student loans

Democratic National Committee advisor Cedric Richmond on Sunday insisted that Congress had given President Biden the authority to forgive student loans

House Speaker Nancy Pelosi and even President Biden have in the past said that the executive branch does not have the authority to unilaterally cancel student loans

House Speaker Nancy Pelosi and even President Biden have in the past said that the executive branch does not have the authority to unilaterally cancel student loans

House Speaker Nancy Pelosi and even President Biden have in the past said that the executive branch does not have the authority to unilaterally cancel student loans

Biden has pointed to the 2003 Heroes Act as the basis of his legal authority to forgive debt. The post-9/11 bill allows the Secretary of Education to waive or modify student financial aid programs in times of war or national emergency.

The law says that active duty military personnel, individuals residing in an area impacted by a national emergency, and those who have suffered ‘economic hardship’ as a direct result of war, military operation or national emergency can have payments waived. 

The Biden administration says that ‘economic hardship’ brought on by the pandemic allows for widespread loan forgiveness. 

Asked whether the plan will withstand legal challenges, Richmond said: ‘Yes, it will hold up in court.’

But even groups like centrist Democratic think tank Third Way have come out against the plan due to the legal challenges it could attract. 

'People think the president of the United States has the power for debt forgiveness. He does not,' Pelosi. said last year

'People think the president of the United States has the power for debt forgiveness. He does not,' Pelosi. said last year

‘People think the president of the United States has the power for debt forgiveness. He does not,’ Pelosi. said last year

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‘We’re very concerned that it is going to get held up in court and leave borrowers in limbo,’ said Lanae Erickson, senior vice president for social policy, education and politics at Third Way, according to The Hill. 

Experts have suggested that loan servicers could sue to stop the plan, since they would be directly impacted by debt forgiveness. But some federal courts have in the past refused to allow government contractors to sue against regulations that hurt their profit margin. 

Erickson said that those who just miss the cutoff for forgiveness, such as those who make $126,000, might also be able to sue. 

And should Republicans retake the House of Representatives, they could also file a lawsuit against the plan as early as January, similar to the one then-House Speaker John Boehner, R-Ohio, filed over the Affordable Care Act in 2014.

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