Posted on 08/25/2022 5:48:24 AM PDT by karpov
Yesterday morning, President Joe Biden revealed his administration’s plan to forgive billions of dollars in student loans. According to a White House Fact Sheet, the plan will forgive up to $20,000 in federally held debt for students who received Pell Grants and up to $10,000 for students who did not. Forgiveness applies to individuals earning less than $125,000, with an income ceiling of $250,000 for married couples. Additionally, the Covid-era pause on student-loan payments will be extended until December 31, 2022. The plan also allows borrowers with undergraduate loans to cap repayment at just five percent of monthly income.
Critics on both sides of the aisle have already panned the plan for its many critical problems, including:
1. It’s regressive. Biden’s debt cancellation plan includes borrowers with household incomes of up to $250,000, an amount that puts such couples in the top 10 percent of income earners nationwide. A Penn Wharton budget model estimates that “between 69 and 73 percent of the debt forgiven accrues to households in the top 60 percent of the income distribution.”
2. It penalizes the 286 million Americans with no outstanding student-loan debt, including many who never attended college. Dr. Beth Akers of the American Enterprise Institute tweeted yesterday, “Only about 1 in 5 Americans hold student loans. The other 4 will be on the hook to pay their share of the hundreds of billions we will spend on Biden’s loan cancellation plan … but will see no benefit.”
Also excluded are the millions of borrowers who refinanced their student loans through private lenders and those who borrowed from sources other than the federal government.
3. It’s costly.
(Excerpt) Read more at jamesgmartin.center ...
Regressive and probably unconstitutional.
That describes biden’s.,and obama’s presidencies.
Should be unconstitutional and immediately challenged as such.
Further review the Trump court if they don’t act.
It will assist the movement now underway toward a totalitarian Communist government. Just what the Bi-coastal Blues have always wanted.
Exactly.
But then again, are they gonna promise more before Nov?
That ain’t the vote I’m talking about. I KNOW Biden won’t run again. I’m talking about THIS November, not 2024.
If a bunch of Dems start screaming “Vote for me in the midterms or the Republicans will stop the ‘forgiveness’!!”, the brain-dead freeloaders may rally themselves out of their parent’s basements to actually vote.
The purpose of Project Mayhem was to reset all debt to zero, in order to cause world-wide chaos. (Fight Club)
With all of Biden’s fiascos nobody needs to invade the country he’s giving it away.
Xi much happy
I need some help here. Seriously. Why is the WH Resident Pedophile going to give people who received Pell grants up to $20,000. I thought Pell grants were grants and didn’t have to be paid back.
They are going to “forgive” up to $20K in loans for people who also got Pell grants. The idea is that such borrowers were poor (as evidenced by Pell grant eligibility) and deserve an even bigger handout now.
So, if it’s unconstitutional, reverse it.
“household incomes of up to $250,000”
THIS MUST BE STOPPED. The only scenario I can think of when cancelling student debt would be for a person making under 50k, severely disabled, unable to work and HAS been faithfully paying their debt and can no longer do so.
I am trusting that one of our fine representatives have filed a lawsuit to halt this giveaway madness! What part of ‘unconstitutional’ don’t they understand? Nancy said a while back that the plan to forgive student loans was unconstitutional? Will she file to impeach Biteme?
not the point
the dems can campaign on this
the loss in court will be well after the election
that is why biden waited til close to election
As for point 2 my wife took money from our mortgage to pay off her $12,000 student loan some years back. How is that fair to her? The harassment was never ending until she paid it back.
Not that it matters anymore, but the loans themselves are un-Constitutional. The Constitution permits the federal government to borrow money, not loan it.
2. Any of us who paid off their student loans, and/or did not co-sign for anyone else. We as a country have no legal or moral obligation to pay anyone's loans (that's gifting taxpayer $ to individuals). The gov't has placed us and our descendants in a state of Involuntary Servitude (at the point of a gun, under penalty of law) to pay with either direct taxes (confiscation of property) or indirect taxes (inflation from gov't money-printing, still confiscation of property: our earnings), again under penalty of law/point of a gun. Both of which happened (a) without Congressional approval or Due Process of Law. 5th and 13th Amendment violations, under color of law.
Of course, neither lending money and forgiving debts are found in either Article I, Section 8 nor anywhere in Article II, nor in any current Amendments to the Constitution. Nor is "education" listed as an area of authority delegated to fedgov, so that is retained by the People and the States (10th Amdt). Thanks, Jimmah Cahtah.
Even the Dept of Education's own Office of Legal Counsel memo says they can't do it. West Virginia v. EPA also calls this into question, as would the Bruen framework.
Members of Congress who say that this is an executive usurpation of an enumerated power of Congress.
-PJ
I am not a lawyer, but know enough to be dangerous.
A loan is a legal agreement for a lender to lend money and the borrower agrees to pay it back. To me this a contract.
So doesn’t this throw contract laws out the window?
Mortgages? Car Loans? Next?
It’s illegal for him to wholesale cancel the billions in loans for students. One reason, which many people aren’t even thinking about, is that this fiscal policy extends well outside of the limit of this administration, and probably out of the period of democrat control, which is simply irresponsible. Once “forgiven,” these loans can never be reinstated. That leaves a horrible financial burden for administrations and congresses 2, 4, 10 years out, when former students would have still been paying back loans to restore what they PROMISED to taxpayers at the time they took them out.
No one has standing to challenge it. If Republicans held the House and the Senate, they would have, but they don’t and they wont.
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