
Rep. Ilhan Omar (D-Minn.) speaks during an April 9, 2021 press conference. (Photo: Drew Angerer/Getty Images)
Omar Demands Release of Memo Detailing Biden's Authority to Cancel Student Debt
"With a single signature," the lawmaker and her colleagues wrote, "you can improve the economy, create new jobs, transform the lives of 45 million Americans, narrow the racial wealth gap, and maintain the trust of voters."
Oct 08, 2021
More than six months after the White House said it would promptly release information about its authority to cancel student loan debt, Rep. Ilhan Omar informed the Biden administration on Friday that she and other progressives in Congress are done waiting.
The Minnesota Democrat led more than a dozen of her colleagues in writing to President Joe Biden and Education Secretary Miguel Cardona, Politico reported, calling on them to release a memo detailing the extent of the administration's authority.
"Turning student debt payments back on in the middle of a pandemic is an act of policy failure. Cancelling student debt is both the morally right and economically sound thing to do."
White House Chief of Staff Ron Klain said in April that the memo would be made public within "weeks." Now, the date when borrowers will be required to make monthly payments again following Biden's extension of the Trump administration's moratorium--January 31, 2022--is fast approaching with no further information about the White House's plans for student loan cancellation.
"Borrowers are anxiously awaiting the administration's actions," wrote the members, who also included Reps. Jamaal Bowman (D-N.Y.), Cori Bush (D-Mo.), and Alexandria Ocasio-Cortez (D-N.Y.). "The time has come to release the memo and cancel student debt."
House Speaker Nancy Pelosi (D-Calif.) and the president have claimed that Biden lacks the authority to cancel student loan debt, but as the lawmakers pointed out in their letter, legal experts say Section 432(a) of the Higher Education Act gives him that power.
Section 432(a) states that the education secretary has the authority to modify loan terms and "enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption."
"Several legal scholars, including those at the Project on Predatory Student Lending at the Legal Services Center of Harvard Law School, and 80 members of the House and Senate confirm that the administration has the authority to broadly cancel student debt," the lawmakers wrote, adding that the White House has already canceled all interest on federal student loans.
"It would be an exercise in legal gymnastics to suggest that the president had the authority to cancel the interest on student debt on his first day, but lacks the authority to cancel the principal on student debt moving forward," they wrote.
Related Content

Hours After Pelosi Comments, Pressley Says Biden Clearly 'Has the Authority' to Cancel Student Debt
Noting that 45 million Americans currently owe a total of $1.8 trillion in student debt--leading many young people to delay or forgo home ownership, entrepreneurship, and parenthood, according to several studies--Omar and her colleagues wrote that the student debt crisis is a policy failure "even during times of economic normalcy."
"Turning student debt payments back on in the middle of a pandemic is an act of policy failure," the group wrote. "Cancelling student debt is both the morally right and economically sound thing to do."
"With a single signature," the lawmakers added, "you can improve the economy, create new jobs, transform the lives of 45 million Americans, narrow the racial wealth gap, and maintain the trust of voters."
We are at a crossroads
This country and this world are at a monumental crossroads. US voters have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. Our Fall Campaign is underway, and we need your help. To power our newsroom through the rest of the year, we need to raise $125,000 by midnight on October 31. So if you share our vision, please contribute whatever you can to sustain our work. |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
More than six months after the White House said it would promptly release information about its authority to cancel student loan debt, Rep. Ilhan Omar informed the Biden administration on Friday that she and other progressives in Congress are done waiting.
The Minnesota Democrat led more than a dozen of her colleagues in writing to President Joe Biden and Education Secretary Miguel Cardona, Politico reported, calling on them to release a memo detailing the extent of the administration's authority.
"Turning student debt payments back on in the middle of a pandemic is an act of policy failure. Cancelling student debt is both the morally right and economically sound thing to do."
White House Chief of Staff Ron Klain said in April that the memo would be made public within "weeks." Now, the date when borrowers will be required to make monthly payments again following Biden's extension of the Trump administration's moratorium--January 31, 2022--is fast approaching with no further information about the White House's plans for student loan cancellation.
"Borrowers are anxiously awaiting the administration's actions," wrote the members, who also included Reps. Jamaal Bowman (D-N.Y.), Cori Bush (D-Mo.), and Alexandria Ocasio-Cortez (D-N.Y.). "The time has come to release the memo and cancel student debt."
House Speaker Nancy Pelosi (D-Calif.) and the president have claimed that Biden lacks the authority to cancel student loan debt, but as the lawmakers pointed out in their letter, legal experts say Section 432(a) of the Higher Education Act gives him that power.
Section 432(a) states that the education secretary has the authority to modify loan terms and "enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption."
"Several legal scholars, including those at the Project on Predatory Student Lending at the Legal Services Center of Harvard Law School, and 80 members of the House and Senate confirm that the administration has the authority to broadly cancel student debt," the lawmakers wrote, adding that the White House has already canceled all interest on federal student loans.
"It would be an exercise in legal gymnastics to suggest that the president had the authority to cancel the interest on student debt on his first day, but lacks the authority to cancel the principal on student debt moving forward," they wrote.
Related Content

Hours After Pelosi Comments, Pressley Says Biden Clearly 'Has the Authority' to Cancel Student Debt
Noting that 45 million Americans currently owe a total of $1.8 trillion in student debt--leading many young people to delay or forgo home ownership, entrepreneurship, and parenthood, according to several studies--Omar and her colleagues wrote that the student debt crisis is a policy failure "even during times of economic normalcy."
"Turning student debt payments back on in the middle of a pandemic is an act of policy failure," the group wrote. "Cancelling student debt is both the morally right and economically sound thing to do."
"With a single signature," the lawmakers added, "you can improve the economy, create new jobs, transform the lives of 45 million Americans, narrow the racial wealth gap, and maintain the trust of voters."
More than six months after the White House said it would promptly release information about its authority to cancel student loan debt, Rep. Ilhan Omar informed the Biden administration on Friday that she and other progressives in Congress are done waiting.
The Minnesota Democrat led more than a dozen of her colleagues in writing to President Joe Biden and Education Secretary Miguel Cardona, Politico reported, calling on them to release a memo detailing the extent of the administration's authority.
"Turning student debt payments back on in the middle of a pandemic is an act of policy failure. Cancelling student debt is both the morally right and economically sound thing to do."
White House Chief of Staff Ron Klain said in April that the memo would be made public within "weeks." Now, the date when borrowers will be required to make monthly payments again following Biden's extension of the Trump administration's moratorium--January 31, 2022--is fast approaching with no further information about the White House's plans for student loan cancellation.
"Borrowers are anxiously awaiting the administration's actions," wrote the members, who also included Reps. Jamaal Bowman (D-N.Y.), Cori Bush (D-Mo.), and Alexandria Ocasio-Cortez (D-N.Y.). "The time has come to release the memo and cancel student debt."
House Speaker Nancy Pelosi (D-Calif.) and the president have claimed that Biden lacks the authority to cancel student loan debt, but as the lawmakers pointed out in their letter, legal experts say Section 432(a) of the Higher Education Act gives him that power.
Section 432(a) states that the education secretary has the authority to modify loan terms and "enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption."
"Several legal scholars, including those at the Project on Predatory Student Lending at the Legal Services Center of Harvard Law School, and 80 members of the House and Senate confirm that the administration has the authority to broadly cancel student debt," the lawmakers wrote, adding that the White House has already canceled all interest on federal student loans.
"It would be an exercise in legal gymnastics to suggest that the president had the authority to cancel the interest on student debt on his first day, but lacks the authority to cancel the principal on student debt moving forward," they wrote.
Related Content

Hours After Pelosi Comments, Pressley Says Biden Clearly 'Has the Authority' to Cancel Student Debt
Noting that 45 million Americans currently owe a total of $1.8 trillion in student debt--leading many young people to delay or forgo home ownership, entrepreneurship, and parenthood, according to several studies--Omar and her colleagues wrote that the student debt crisis is a policy failure "even during times of economic normalcy."
"Turning student debt payments back on in the middle of a pandemic is an act of policy failure," the group wrote. "Cancelling student debt is both the morally right and economically sound thing to do."
"With a single signature," the lawmakers added, "you can improve the economy, create new jobs, transform the lives of 45 million Americans, narrow the racial wealth gap, and maintain the trust of voters."
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.
To inform. To inspire. To ignite change for the common good.
News & Opinion
Trending
Common Dreams, Inc. Founded 1997. Registered 501(c3) Non-Profit
Privacy Policy

