The Rebound: Student loan debt forgiveness

THE ECONOMY --WIPING OUT SOMESTUDENT LOAN DEBT.ALICIA NIEVESSHOWS US HOW THISDEBT WIPEOUTCOULD WORK...AND WHETHER IT'SLIKELY TO REALLYHAPPEN.President-elect JoeBiden campaigned on apromise to forgive somestudent loan debt.And now millions ofAmericans are hopefulthat will happen shortlyafter he takes office.(Kahn@1:31)"I think it is one of themost accessible waysPresident Elect JoeBiden has to stimulus theeconomy."Suzanne Kahn is thedirector of Education,Jobs, and Worker Powerat the RooseveltInstitute.[graphic]And says Biden has twochoices for immediatelystudent loan forgiveness:Push for Congress toinclude it in the nextstimulus package.

He'scurrently doing that andpushing for $10,000 tobe forgivenIf congress, doesn'tinclude it in a stimuluspackage.

Biden canissue an executive orderby authority given to himin the Higher EducationAct.Either option couldeliminate student loandebt for roughly 15million borrowers andreduce the debt ofanother 30 millionAmericans.[end graphic](kahn@2:10)"I think that it is throughexecutive action, or atleast the first movementwe see around it will beexecutive action.

Andthat really is because thefederal government owes95% of student debt andthe secretary ofeducation has the abilityto cancel it."(Neal@ 13:45)"My stance is that it is notinevitable."Neal McCluskey is thedirector of the Center forEducational Freedom atthe Cato Institute.And says student loanforgiveness especiallythrough executive ordercould be the mostcontroversial way to go.(Neal@4:06)"There seems to bestraws that he can graband say look this givesme the authority to justwrite off this debt.

Otherpeople say it is not clearin the law that he can dothat.

So what would bethe most likely outcomeis that he would try, if hewere to try and cancelstudent loan debtthrough executive actionit would end up in courtand would be a prettylong court battle."So if you are at homewondering what thismeans for your studentloan debt?

Ultimately, isnow MORE likely thanEVER BEFORE thatsome of your debt couldbe forgiven BUT still nowhere close toguaranteed.(kahn@12:55)"I don't think it isinevitable, but I do think itis important that it is onthe table "I'm Alicia NievesSTILL AHEAD...