How possible is it for student debt to be canceled? Like is it plausible for a president to do so and if so how would they do it?
In: Economics
For the federal potion of loans they can just write them off the books. There is a specific law prevents thsibunder normal circumstances so remvoinf that law would be required.
For the rest the paperwork would look like any other loan expungement. Similar to bankruptcy or settlement the bank just writes it off the books.
The issue would be creating a robust mechanism to enforce this. A few relatively simple adjustments to finance law would create an easy process.
If schools couldn’t count on free money like that there would have to be some contraction but an easy fix if Congress plays along.
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