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Can the President Cancel Student Debt? Should He?
James G. Martin Center for Academic Renewal ^ | December 4, 2020 | George Leef

Posted on 12/04/2020 8:22:52 AM PST by karpov

Many people and groups are pressuring Joe Biden to issue an executive order that would cancel some or all federal student debts shortly after he takes office. During the campaign, Biden said that he would immediately cancel $10,000 of student debt for each borrower, but some want the incoming president to go further. For example, Senator Charles Schumer, the Democratic leader in the Senate, has advocated that Biden cancel student debts up to $50,000.

Before considering whether student debt cancellation of that or any magnitude is a good idea, we should first ask whether the president in fact has the authority to cancel student debts.

The place to start is with the Constitution, which says (in Article II) that “the executive Power shall be vested in a President of the United States of America.” It says nothing about “executive orders,” but going back to George Washington, presidents have issued such orders, meant to direct subordinates in the executive branch in carrying out their duties.

They are not supposed to create new law or policy, however, since that is power exclusively given to Congress. When the president has used executive orders to make new law or break old law, courts have stepped in to stop him, as in the 1952 case Youngstown Sheet and Tube, where the Supreme Court held that President Truman could not seize a steel plant that was on strike, even during time of war.

With respect to student debt, Congress has written a vague provision into the Higher Education Act that gives the secretary of education some authority to grant relief to student debtors, so it isn’t clear that the sort of sweeping executive order envisioned by Senator Schumer and the activists would be illegal.

(Excerpt) Read more at jamesgmartin.center ...


TOPICS: Business/Economy; Education; Politics
KEYWORDS: loanforgiveness; studentloans
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1 posted on 12/04/2020 8:22:52 AM PST by karpov
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To: karpov

I don’t think Trump is going to cancel student debt.


2 posted on 12/04/2020 8:23:32 AM PST by an amused spectator (Mitt Romney, Chuck Schumer's p*ssboy)
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Perhaps if they didn’t have to fund diversity departments, or fake majors, people would be able to go to college without forcing others to fund it


3 posted on 12/04/2020 8:26:56 AM PST by dsrtsage (Complexity is merely simplicity lacking imagination)
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To: an amused spectator

I see what you did there....and I like it!


4 posted on 12/04/2020 8:27:00 AM PST by ealgeone
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To: karpov
1952 case Youngstown Sheet and Tube, where the Supreme Court held that President Truman could not seize a steel plant that was on strike, even during time of war.

Get enough 'Rats on SCOTUS and that case is likely to be over-ruled.

5 posted on 12/04/2020 8:28:12 AM PST by BenLurkin (The above is not a statement of fact. It is either opinion, or satire. Or both.)
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To: karpov

he cannot cancel student debt or any other debt owed the federal government unless he wants to pay for it out of his personal savings account

canceling debt would constitute a direct violation of statutory law an appropriation of government funds and as such is a matter for Congress to legislate

besides, it would be about the worst public policy since Zero=Care, even worse as it would constitute a pure giveaway and it would train youth to lie and become freeloaders (in short, Democrats)


6 posted on 12/04/2020 8:28:48 AM PST by faithhopecharity (Politicians are not born, they are excreted. Marcus Tullius Cicero (106 to 43 BCE))
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To: karpov

Hard-Working Plumber Looking Forward To Paying For His Neighbor’s Gender Studies Degree
https://babylonbee.com/news/hard-working-plumber-looking-forward-to-paying-his-for-his-neighbors-gender-studies-degree


7 posted on 12/04/2020 8:30:05 AM PST by FreedomPoster (Islam delenda est)
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To: karpov

No. No.


8 posted on 12/04/2020 8:30:08 AM PST by wny
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To: an amused spectator

A one time reduction in debt is meaningless. It will just encourage colleges to ratchet prices up even faster than they do. In a short time you will have a new batch of “distressed” students debtors. So then do you do it again? I have saved enough for my grandchildren’s college, but if I think they will get debts forgiven I will encourage them to borrow. I can use my savings for something else. A mid-engine Corvette would be good.


9 posted on 12/04/2020 8:31:48 AM PST by Stevenfo
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To: karpov

Biden has a pen and a phone . Of course he can issue an executive order to cancel student debt and of course the order will not be challenged because he is a Democrat.


10 posted on 12/04/2020 8:34:05 AM PST by buckalfa
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To: karpov

The government does not have the right to cancel a debt, except money owed to it, It does not have the right to change the terms of a legal contract.

It gives itself the power, but it does not have the right.


11 posted on 12/04/2020 8:36:08 AM PST by I want the USA back (I fear my government much much more than a virus from china.)
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To: Stevenfo
"It will just encourage colleges to ratchet prices up even faster than they do."

As they say, "if you think college is expensive now, just wait till it's free."
12 posted on 12/04/2020 8:36:29 AM PST by clearcarbon
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To: karpov

The question should be:

Can We the People CANCEL the Debt wrapped around our necks by the Ruling Class? One State at a Time


13 posted on 12/04/2020 8:39:08 AM PST by eyeamok
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To: Stevenfo

Yes, this is just a bailout for the Left’s footsoldiers in the universities.


14 posted on 12/04/2020 8:39:16 AM PST by an amused spectator (Mitt Romney, Chuck Schumer's p*ssboy)
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To: Stevenfo

Yes, this is just a bailout for the Left’s footsoldiers in the universities.


15 posted on 12/04/2020 8:39:17 AM PST by an amused spectator (Mitt Romney, Chuck Schumer's p*ssboy)
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To: karpov
Considering that the primary holder of student loan funding happens to be the federal employees retirement funds, one might think not.

"Dick and Jane Got Duped In Their Way To School"

Great new book. Very sad but funny.

16 posted on 12/04/2020 8:43:37 AM PST by blackdog (Proud Dog Faced, Deplorable, Pony Soldier.)
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To: karpov

Take away the meaning of earning a way through college is not right. Many veterans have to serve 4 years to be eligible for the G.I. Bill. It made veterans feel they accomplished a lot besides defending the freedoms of this country.


17 posted on 12/04/2020 8:46:34 AM PST by FreedBird (B)
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To: karpov

If we cancel ‘student debt’ then we deny the stupid the chance to learn from their mistakes.

Stupid is supposed to hurt.


18 posted on 12/04/2020 8:46:37 AM PST by RideForever (We were born to be tested)
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To: an amused spectator

Simple, pay people off to be a Democrat and vote Democrat.


19 posted on 12/04/2020 8:59:15 AM PST by FreedBird (B)
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To: karpov

Heck NO. No one forced the students to attend college and run up large debts, especially the many who majored in “ethnic studies”, “womens studies”, “white supremacy studies” and other useless libtard pap which did not prepare them for the job market. So why on earth should the U.S. taxpayers have to bail them out for poor decisions? Are we to continue to bail them out for poor decisions the rest of their lives?


20 posted on 12/04/2020 9:01:26 AM PST by EinNYC
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