Student Loan Cancellation May Trigger This Political Firestorm

Student loan cancellation is not only about policy; it’s about politics too.

Here’s what you need to know.

Student Loans

Will your student loans get cancelled? It’s a question that student loan borrowers are asking, and have been asking, especially for the past year. So, what’s the hold up? Well, there’s a standoff of sorts between progressives in Congress, on the one hand, and the president, on the other. There’s the obvious policy debate that is front and center. Beyond the policy debate, however, there is an underlying political angle that could impact the outcome of student loan cancellation. Let’s explore both to understand the full landscape.

Student loan cancellation: the policy angle

Progressive Democrats such as Senate Majority Leader Chuck Schumer (D-NY) and Sen. Elizabeth Warren (D-MA) say student loan debt is preventing a generation of student loan borrowers from getting married, starting a family, saving for retirement, buying a home, and pursuing the American Dream. Schumer and Warren, and others such as Rep. Ilhan Omar (D-MN) and Rep. Alexandria Ocasio-Cortez (D-NY), say that student loan debt cancellation is a necessary policy to decrease disparity and increase opportunity. President Joe Biden agrees. Like his progressive colleagues, Biden wants student loans cancelled, and he clearly recognizes the direct policy impact of wide-scale student loan forgiveness. However, the president and these members of Congress differ on the amount of student loan cancellation and who ultimately will cancel student loan debt. Progressives want Biden, by executive order, to cancel up to $50,000 of student loan debt. Biden wants Congress to cancel $10,000 of student loans. Biden has sought to resolve this standoff, in part, by seeking a legal review of his unilateral authority on student loan forgiveness.

That said, Biden hasn’t allowed a standoff on wide-scale student loan forgiveness to prevent him from enacting student loan cancellation. In his first two months in office, for example, Biden has moved aggressively to cancel student loan debt. Biden already has cancelled $2.3 billion of student loans. His approach to student loan cancellation has been piecemeal and targeted. First, Biden cancelled $1 billion of student loans for 72,000 student loan borrowers and second, he cancelled another $1.3 billion of student loans for 41,000 borrowers with total and permanent disability. Some student loan borrowers have lauded the president’s quick action. Others have said it’s not enough student loan forgiveness and represents only a fraction of total student loan debt. America has definitely reacted to student loan cancellation. It’s that part — the reaction of voters — that is also at play here. Student loan cancellation is more than policy. Let’s learn why.

Student loan cancellation: the political angle

In Washington, every policy has an underlying, and sometimes, equally important political implication. That includes student loan cancellation. Beyond the policy debate, there are several key political implications. When it comes to wide-scale student loan forgiveness, good minds can debate whether the policy trumps politics. However, there is no ignoring the political realities that lurk underneath the surface of student loan cancellation.

Democrats barely control Congress

Currently, Democrats control the White House, the U.S. House and the U.S. Senate. The U.S. Senate is split 50-50 with Republicans, and Vice President Kamala Harris holds the tiebreaking vote. However, in about a year and a half, Americans will vote in the mid-term congressional election. That election could tip the balance of power in Washington, and if Republicans gain seats in the Senate, Biden’s agenda could be challenged. If Biden or Congress proceeds with