$50K of student loan forgiveness would wipe out federal debt for 36M, new data shows

Key context: Warren and other Democrats, including Senate Majority Leader Chuck Schumer, have urged President Joe Biden to use executive power to cancel student loan debt. The Biden administration has announced that it will investigate the problem.

The data provides more detailed insights into the impact of large student loan forgiveness on the federal government’s $ 1.5 trillion student loan portfolio than the department’s existing public records provide.

A less expansive cancellation of the $ 10,000 per borrower student loan Biden helped out in the campaign would wipe out the debt of 15 million borrowers completely. About 4.6 million of these borrowers were in default or defaulted at the end of 2019.

The data also showed that millions of borrowers have had debt on federal student loans for decades. More than 10.6 million borrowers have been repaid for more than 10 years. Another 4.4 million borrowers have been repaid for more than 20 years.

Legal review: The Department of Education response did not apply to Warrens Asked whether the Biden government has overturned a legal opinion published by the department in the dwindling days of the Trump administration. This memo concludes that the agency lacks the authority to unilaterally grant large portions of the federal student loan outstanding.

White House Chief of Staff Ron Klain told POLITICO earlier this month that Biden was expecting a memo from Education Minister Miguel Cardona on the administration’s legal powers to cancel federal student loans within a few weeks.

The Justice Department is also involved in this review, according to the White House.

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