It’s not forgiveness: it’s relief, since it only did away with $10K for most and $20K for Pell Grants, leaving people who took out loans they wouldn’t be able to easily repay based on their degrees with lots of debt
(Fox News) In the opinion, Roberts cited then-Speaker Pelosi’s words saying the president did not have the power to cancel federal student loan debt.
“As then-Speaker of the House Nancy Pelosi explained: ‘People think that the President of the United States has the power for debt forgiveness. He does not,’” Roberts quoted Pelosi’s July 28, 2021, press conference. “‘He can postpone. He can delay. But he does not have that power. That has to be an act of Congress.’”
So, sure, why not try plan b, which they had ready to go, knowing that plan a wouldn’t survive because it was un-Constitutional. Do they think plan b will survive? They would have used it first
Biden reveals Plan B for student debt forgiveness
The Supreme Court on Friday dealt a fatal blow to President Joe Biden’s plan to cancel student debt for tens of millions of Americans.
But Biden student debt relief isn’t dead yet.
Just hours after the court’s conservative majority rejected his loan forgiveness program as a drastic overreach of executive authority, Biden moved swiftly to resuscitate his efforts to cancel debt by invoking a different legal authority. (snip)
But Biden’s second attempt will face a range of major challenges, both practical and legal, as he embarks on what’s going to be a lengthy regulatory process that’s likely to stretch well into next year ahead of the presidential election.
For starters, the White House is barreling toward a deadline this fall as it prepares to resume collecting monthly payments from tens of millions of borrowers who have had their debt frozen since March 2020.
So, what is it?
Biden administration officials acknowledged Friday that their Plan B option — the Higher Education Act path — would involve far more bureaucratic hoops and regulatory minutia than the administration’s first plan, which was quickly implemented once Biden announced it last August.
“This new path is legally sound,” Biden said. “It’s going to take longer, but, in my view, it’s the best path that remains to providing for as many borrowers as possible with debt relief.
It’s a convoluted measure that will be difficult to implement and even start. Which will not survive judicial review, most likely. I slightly feel for these folks in that the government has bailed out many banks and businesses, but, then, I do not think they should have been bailed out. You take the risk, and other people really shouldn’t have to pay for your risky behavior. If you invest a boatload of money in a business venture and it goes bust, no one is helping those individuals. Nor should they. If you put your money in a shaky bank operating on principles like DEI rather than sound, established, safe principles, well, you can get your FDI insured $150K, and that’s it. You made the poor decision to keep your money in that bank. If you take out $100K in student loans for a degree in Medieval Art History or Feminist Studies, or heck, get a law degree but aren’t that good, that’s on you. Pay your bills
Education Secretary Miguel Cardona announced Friday that student loan repayment would continue as planned this fall. But he said the administration was taking new steps to ease the resumption of payments, which will include the tens of millions of Americans who were promised relief under the now-defunct program.
The Education Department said it would create an “on-ramp” 12-month transition period in which borrowers won’t get dinged on their credit reports for missing payments, though interest will continue to accrue. Department officials had earlier this month told loan servicers to develop an initial 90-day period of what they internally call a “safety net” period and to be prepared for subsequent extensions.
Those people should have been saving since the Wuhan Flu pandemic started, since 1) the relief of a portion of their loans might not happen and 2) they would still be left with debt that had to be paid regardless. If one owed $40K and had $10K lopped off, they still had to pay on the $30K, right? These folks should have been saving for the resumption of payments. I wonder how many did, and how many pissed it away while taking lots of fossil fueled travel to take selfies and TikTok vids, along with having all their food delivered? And, really, they shouldn’t have taken out loans they couldn’t pay.
I’m personally OK with not killing them on their credit reports (though, it’s already there and doesn’t usually help, with loan companies seeing what they already owe as debt). I’m also fine with doing something like reducing interest, since Democratic Party run colleges are essentially over-charging because it’s so easy for the kiddies to get loans.
Mrs Dowd and I paid off undergraduate degrees for three and then a very expensive professional degree for one!! Hundreds of thousands!! Now, Joe wants to give away $400 billion to deadbeat college kids!
We support the President. The US forgave nearly a $ trillion in PPP loans during the Trump Pandemic, including to wealthy Congress members!
The original student debt-relief didn’t eliminate the debts but reduced them.
And it’s time we all admit that SCOTUS is and has always been political. On significant political issues (abortion, affirmative action, LGBTQ) the ostensible “majority” decides what they want and then look for justification.
Yes, and this time they looked in the Constitution. Amazing what one can find… strange stuff like free speech, no preferential treatment, etc. The libs whine about “institutional racism” but the only institutional racism found in the US was government forced racism in the form of affirmative action. Apparently the libs still have a hard time differentiating between equal opportunity and equal outcomes.
Affirmative Action for rich white kids is OK?
“Legacies” account for over 10% of admissions at many prestigious universities.
For every “legacy” admission someone else misses out.
Plan B ??? I thought he was on plan G or H by now.
First .gov committed the power grab of taking over the student loan business, it should never have been allowed to happen, but that’s a different debate.
Colleges and universities (predictably) clamped down on their in-house financial aid programs in favor of a tidal wave of cash from .gov. Tuitions and fees were jacked up and administrators and teaching staff salaries went through the roof because the customers (students and parents) could just get .gov to cover it almost automatically. Don’t think so? In the early 90s a full ride at an ivy league school would set you back between $20k and $25k, now it’s over $100k.
Just that part alone was a scam, that simply funneled funds from the US Treasury directly to the schools, again, totally wrong and should not happen, but it gets worse. It was the plan all along to let the scam get entirely out of hand and hang most of the debt on the taxpayers. That’s where we are now but get this, THE LOANS ARE STILL GETTING PUMPED OUT!! This is a never-ending scam and they’re just trying, as usual, to distract everyone from the on-going theft with the current, inane debate. We are NEVER going to hear the end of this, ever. This will become a “baseline” expense in the annual budget and it will be almost illegal to stop spending this money.
Once again, it’s the responsible who pay the price for the crooks and fools that created the problem. We’ve seen this movie a hundred times and it always ends the same way.
Look, you took out a loan, pay it back. Oh, boo hoo, I didn’t get a degree that was worth a fart in a full gale so I have to work as a barista, and I can barely afford my piercings and tattoos!
So, default, declare bankruptcy, and your credit rating will suffer just like the rest of us when we fuck up our finances!
There’s a way out of this for the poor souls with more debt than they can pay off with the brain full of mush that they bought with their free .gov money. Wake the fuck up, get smarter, work hard, cut back on your living expenses. But the participation trophy kids don’t want to hear that shit. All they seem to be able to do is cry, bitch, piss and moan about how easy previous generations had it. Right, I had it easy, and I’ve got the scars to prove it.
We’re doomed.