Biden signs student loan cancellation

veni vidi vici

Omne quod audimus est opinio, non res. Omnia videm
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7F951527-3F29-454A-AB2F-F3E971FDEFE4.jpeg
 

pusslicker

Super Anarchist
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With V3 I see a lot of aspirational thinking. NTTIAWWT. He also wrote publically here that doesn't like Trump as a person, which is a huge damn relief.
He followed not liking Trump as a person with "Trump is a tool for folks like me to get what we want". He never answered my question on exactly what that meant. He's a piece of shit any way you look at it.
 

DanJ

New member
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"That's probably one of the only things the government shouldn't make money off -- I think it's terrible that one of the only profit centers we have is student loans," Donald Trump told The Hill in July.

But beyond that, the government doesn't actually collect much interest from student loans. As I mentioned above, student loans are bundled into Asset Backed Securities and then sold off to the bond market. They're handled by loan servicers (such as Great Lakes, Nelnet, etc.) and the payments largely go to the bond holders - not the US government. The US government is the guarantor of the loans - they're the 'cosigner' on behalf of the student. The government doesn't really have the wherewithall to handle loans and so pushes it out to the private sector as much as possible. The numbers I've seen put the +/- on student loans as a couple billion - on a base of over 1.5 trillion.

Yes, forgiving the debt transfers the obligation to the US taxpayer. Yes, by guaranteeing the interest, they're ALSO giving a HUGE handout to the bond market IMHO. I whined about that above.
I didn’t think about it right away, but really, someone still has to pay the debts, and it turns out that these student loans will become a problem for the taxpayers.
 

veni vidi vici

Omne quod audimus est opinio, non res. Omnia videm
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I didn’t think about it right away, but really, someone still has to pay the debts, and it turns out that these student loans will become a problem for the taxpayers.
Hello!
Everything has become the problem of the taxpayers since
LBJ and the beginning of the Great Society
Where the government volunteered to solve personal and societal problems, of course it can not!
 

Pertinacious Tom

Importunate Member
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Student loan forgiveness plan has a SCOTUS problem


We have lots of older and more obscure emergencies, one declared by President Carter IIRC, so the panicdemic isn't all that old as PANICS go.

So is this a major question? I don't know. Seems like bad policy to me to forgive loans, whether student loans or Panicdemic Payout Pork loans.
The justification for student loan forgiveness went poof.

In the summer of 2021, Democratic Speaker of the House Nancy Pelosi offered the following response when asked about the president's power to unilaterally cancel student loan debt. "The president can't do it—so that's not even a discussion," she said. The president can delay repayment, as happened following the COVID-19 pandemic, she added, but, "it would take an act of Congress, not an executive order, to cancel student loan debt." That would seem to be that.

Yet roughly a year later, President Joe Biden did cancel up to $20,000 worth of student loan debt for most borrowers, and, in direct contradiction to Pelosi's pronouncement, he did it entirely via the executive branch. There was no act of Congress.

How exactly was this legal? What, exactly, gave the president authority to unilaterally cancel student debt?

The answer, it turned out, was the pandemic. As Reason's Damon Root wrote in August, when Biden announced his debt cancellation plan last month, administration lawyers cited the Higher Education Relief Opportunities for Students, or HEROES Act, of 2003, a post 9/11 law that "permits the Secretary of Education to waive or modify Federal student financial assistance program requirements to help students and their families or academic institutions affected by a war, other military operation, or national emergency."

The law was clearly intended as a vehicle to give the president the power to forgive student loan debt for individuals directly involved in fighting the war on terror. But in Biden's revisionist citation, it became an all-purpose tool for mass debt forgiveness via executive action, premised on the argument that the COVID-19 pandemic was an ongoing national emergency.

The pandemic, in this formulation, gave Biden extraordinary powers—powers that under normal circumstances the president would not have.

It was an inherently dubious justification, given the novel and expansive reading of the HEROES Act. But Biden completely undercut it on a 60 Minutes interview this weekend when he declared, flatly, that "the pandemic is over."

...
I wonder whether the Panicdemic Pandering Pork "loans" were also forgiven due to the PANIC?

Glad it's over anyway.
 

Pertinacious Tom

Importunate Member
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Biden Mistakenly Imagines That Congress Approved His Student Debt Cancellation Scheme

President Joe Biden recently claimed his student loan forgiveness plan was authorized by "a law" that he "just signed" after Congress narrowly approved it. "It's passed," he said during a NowThis News panel discussion. "I got it passed by a vote or two."


In reality, the debt cancellation program was never approved by Congress, which is the main argument underlying several legal challenges to it. By trying to unilaterally relieve some 43 million Americans of the obligation to repay the money they borrowed for college, those lawsuits say, the Biden administration overstepped its statutory authority, violating the rule of law and the constitutional separation of powers.
...
Inconveniently for Biden, he declared that "the pandemic is over" weeks before the Department of Education planned to start implementing the debt forgiveness program. Furthermore, the federal government froze interest accrual and waived loan payments for most borrowers during the pandemic, and that forbearance extends until the end of this year, which makes the alleged connection to this particular national emergency even more tenuous.


Before Biden suddenly discovered the authority to forgive student loans en masse in the HEROES Act, members of Congress repeatedly tried to achieve similar ends through legislation that went nowhere. House Speaker Nancy Pelosi (D‒Calif.) emphasized that only Congress could authorize the sort of relief Biden is now touting.

"People think that the president of the United States has the power for debt forgiveness," Pelosi told reporters in July 2021. "He does not. He can postpone, he can delay, but he does not have that power. That has to be an act of Congress."

The Education Department agreed with Pelosi's assessment before reversing that position to accommodate the president's plans. Until recently, Biden himself was not claiming that he could unilaterally forgive student debt, instead saying he would happily sign a bill to that effect.

Contrary to what Biden mistakenly recalled during that NowThis conversation, Congress never passed such a bill. The question for the courts, assuming that plaintiffs can establish their standing to challenge his debt cancellation program, is whether he can do what he wants regardless of what the law says.

Who here agrees with 2021 Pelosi on whether Biden can do this?
 


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