AOC: It’s time ‘to bring the heat on Biden to cancel’ student loan debt

Rep. Alexandria Ocasio-Cortez (D-N.Y.) in an Instagram story Friday renewed calls for President Joe Biden to use his executive authority to cancel student loan debt.

In her comments, the congresswoman referenced the president’s Build Back Better spending plan, which has been successfully whittled down by moderate lawmakers.

"I think given how much BBB has been slashed, there is more opportunity than ever to bring the heat on Biden to cancel student loans," Ocasio-Cortez wrote.

She added that the "showdown" over canceling student debt will happen at the end of January 2022 when federal student loan payments are supposed to resume. 

Keep reading to learn more about the future of debt cancellation for student borrowers. And if you're not sure how to manage your private student loan debt, you can visit Credible to compare interest rates for private student loan refinancing without impacting your credit score.

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Biden ‘doesn’t need Manchin's permission' to cancel student debt

The Biden administration needs support from moderates to pass its signature trillion-dollar spending bill, but Democratic lawmakers like Sens. Joe Manchin (D-W.Va.) and Kyrsten Sinema (D-Ariz.) have held their support for the bill in hopes of reducing the final price tag. As a result, much of Biden's agenda has been cut from the bill, including tuition-free community college.

But progressives have argued that Biden's campaign promise of canceling student loan debt can be done via executive order rather than waiting on Congress to enact this legislation.

"He doesn't need Manchin's permission for [canceling student loans], and now that his agenda is thinly sliced, he needs to step up his executive action game and show his commitment to deliver for people," AOC wrote on Instagram.

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Lawmakers are split on whether Biden can cancel student debt

Democrats disagree about whether the Biden administration can enact loan cancellation legislation with executive authority. Senate Majority Leader Chuck Schumer (D-N.Y.) has said that Biden can cancel up to $50,000 in federal student loan debt per borrower "with the flick of a pen," while House Speaker Nancy Pelosi (D-Calif.) has argued that the president doesn't have the authority to forgive student loans.

To get a straight answer on federal student loan forgiveness, the White House in April said it asked the Department of Education to determine the president's authority to forgive student loan debt. The Education Department was supposed to provide a memo on the subject, but that memo has not yet been released to the public.

Progressive lawmakers, including Rep. Ilhan Omar (D-Minn.), urged Biden to "release the memo" by Oct. 22, but the day came and went without an answer from the president. 

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If you're considering refinancing your college debt, compare interest rates from real private lenders in the table below. Keep in mind that refinancing your federal student loans makes you ineligible for certain debt relief protections like COVID-19 administrative deferment and federal student loan forgiveness programs.

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Now is the time to consider your student loan repayment plan

It's still unclear whether student debt forgiveness legislation is in the works. Education Secretary Miguel Cardona has said that the Education Department and the Department of Justice are continuing conversations on "broad" student loan forgiveness. However, he added that student loan borrowers should still prepare for federal payments to resume in a few short months.

Even though President Biden has said this is the "final extension" of the student loan payment pause, many borrowers have said that a longer forbearance period is needed. You can check the status of your loans on the Federal Student Aid (FSA) website.

If you're unable to resume your monthly payments by February 2022, consider your student loan repayment options like private student loan refinancing. Get in touch with a knowledgeable loan officer at Credible to learn more.

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