The administration has no legal authority to pursue its punishment of the working class in favor of lawyers, doctors, and unemployed art history PhDs.
On April 25, President Joe Biden gave his strongest indication yet that he would unilaterally force taxpayers to pay off other people’s student loans. Biden is hopeful to restore his dire approval rating among young people, 85 percent of whom apparently want other people to pay for their personal spending. What politician could resist giving out other people’s money?
Let’s put aside for a second that forgiving student loans is a regressive wealth transfer, unfair to past loan holders, an inflation bomb, and incentivizes colleges to raise tuition even higher. There’s another real problem—the administration has no legal authority to pursue its punishment of the working class in favor of lawyers, doctors, and unemployed art history PhDs.
When our founders gave the president the authority to command the Army and receive ambassadors, they never mentioned the president’s student loan forgiveness powers. So, he can only take this action if Congress has authorized it. Congress hasn’t.
1. You Can’t Forgive Loans You Don’t Own
Proponents of nationalizing $1.75 trillion in student debt claim the U.S. secretary of education has the power to absorb such debt pursuant to the Higher Education Act of 1965. This act set up a public-private loan program where the federal government didn’t directly own any student’s loan. Rather, private lenders lent money to students at capped rates, in exchange for the federal government backing the loans.
These government-backed loans had specific terms on deferment, default, and repayment. For example, if the borrower served in the Peace Corps, the borrower could defer paying principal (but interest would accrue) for up to three years. Also, for students whose families made less than $15,000 per year, the government would pay a portion of the interest.
In addition, Congress provided general authorities to the secretary of education to oversee the program, including that the secretary may “enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right or redemption.”
ILLEGAL is the Only reason needed !!!!
People in America will REFUSE to do it !!! Just like Obama Care ( for Blacks )
No different than when amnesty happens. WE ALL PAY!