Topline

Inaction by the Biden administration on canceling student loans would cause “tremendous disillusionment” from voters who are crucial to the Democratic Party, former Education Secretary John King warned in an interview published Friday, amid growing pressure on the White House from many Democrats to at least partially cancel federal student debt.

Key Facts

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Asked what would happen if President Joe Biden doesn’t cancel student debt, King told CNBC, “There would be tremendous disillusionment from key components which are crucial for the health of the Democratic Party.”

King, 47, served as Education Secretary from 2016 to 2017, and is currently running for the governor of Maryland.

King said it was within the scope of Biden’s ability to cancel student loans—without Congress—thanks to “a process for debt cancellation” introduced by the Obama administration, apparently referring to power granted to the Education Secretary to waive or modify student loan debt in certain cases , such as the closure of an institution or if students were misled by colleges and universities about job prospects.

Student loans totaled $1.75 trillion as of the fourth quarter, up around 90% in 10 years, according to the Federal Reserve Bank of St. Louis.

On his campaign websiteKing refers to student loan debt as a “crisis” that disproportionately affects people of color.

Last month, the Biden administration canceled $415 million of student loans for nearly 16,000 borrowers who attended for-profit schools, the Department of Education said in a statement,



Credit: www.forbes.com /

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