Answer:
President Biden, as the head of the executive branch of the United States government, has the authority to take executive actions within the scope of his constitutional powers. While Congress holds the power of the purse and is responsible for passing spending bills and budgets, the President can use executive orders and directives to enact certain policies and make decisions on specific issues, such as student loan forgiveness.
The Higher Education Act of 1965 gives the Secretary of Education the authority to "compromise, waive, or release" student loans. The President can direct the Secretary of Education to implement student loan forgiveness programs under this authority. President Biden used this authority to provide $1.2 billion in college student loan forgiveness for borrowers who were defrauded by for-profit colleges.
There are limitations on the types of loans that the President can forgive. Generally, federal student loans are eligible for forgiveness, including Direct Loans, Federal Family Education Loans (FFEL), and Federal Perkins Loans. Private student loans, which are issued by private banks and lenders, are not eligible for forgiveness through federal programs.
In addition, there may be specific eligibility criteria and requirements for loan forgiveness programs, such as being enrolled in certain repayment plans or meeting certain qualifying conditions. The President's authority to forgive student loans is not unlimited, and any significant changes to the federal student loan program would likely require legislative action by Congress.
