Student loan debt has become a major problem for many Americans, with the total amount of outstanding student loan debt surpassing $1.6 trillion. Given this large financial burden, many borrowers have been looking for ways to get their loans forgiven, and one question that has come up is whether or not the President has the power to forgive student loans. In this article, we will explore the history of student loan forgiveness and the current laws that impact the ability of the President to forgive student loans.
The History of Student Loan Forgiveness
Student loan forgiveness has a long history in the United States, with the first loan forgiveness programs being established in the 1970s. These programs were designed to help students who were pursuing careers in public service, such as teaching and government work. Over the years, the scope of loan forgiveness programs has expanded, with the introduction of programs for borrowers who work in certain fields, such as healthcare and law enforcement, as well as programs for borrowers who have certain types of loans, such as Federal Family Education Loans (FFELs) and Direct Loans.
Current Laws that Impact Presidential Power to Forgive Student Loans
The Higher Education Act of 1965 is a federal law that governs the student loan program. This law gives the Secretary of Education the authority to cancel a borrower’s loan based on certain conditions, such as disability or death. However, this law does not give the President the authority to forgive student loans.
The Bankruptcy Code is a federal law that governs the ability of borrowers to discharge their student loans in bankruptcy. Under the current law, student loans can be discharged in bankruptcy only in very limited circumstances, such as if the borrower can prove that repayment would cause an “undue hardship.”
The National Defense Authorization Act (NDAA) is a federal law that authorizes funding for the Department of Defense. The NDAA includes a provision that allows the Secretary of Defense to forgive student loans for certain members of the military. However, this provision does not give the President the authority to forgive student loans for all borrowers.
The CARES Act is a federal law that was passed in response to the COVID-19 pandemic. The CARES Act includes a provision that allows the Secretary of Education to suspend payments and interest on certain types of student loans through December 31, 2020. However, this provision does not give the President the authority to forgive student loans.
Conclusion
In conclusion, the President does not have the power to forgive student loans. While there have been loan forgiveness programs established in the past, they have been limited to specific circumstances and specific types of loans. The Higher Education Act, Bankruptcy Code, NDAA, and CARES Act are some of the federal laws that govern student loan forgiveness, but none of them give the President the authority to forgive student loans. If you are struggling with student loan debt, it is important to explore all of the options available to you, such as income-driven repayment plans, loan consolidation, and loan forgiveness programs.