Biden knows he doesn’t have the constitutional power to forgive $400 b in student loans. He went ahead anyways knowing that some naive voters would blame it on the other party.
Court halts Biden’s student loan forgiveness
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As much we argue against the PPP loans and corporate tax cuts as a whatsboutism, they were at least passed by Congress with due process of the law. If Trump had passed these without Congress then I am sure quite a few of us here would be bringing out the torches and pitchforks.
Biden knows that blanket student loan forgiveness would not stand a chance in Congress since the Republicans would fight tooth and nail against it.
Biden knows that blanket student loan forgiveness would not stand a chance in Congress since the Republicans would fight tooth and nail against it.
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I'm not so sure this will completely halt his executive order. You'll have to see how this plays out.
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May as well cancel mortgages, auto loans and credit card debt while he's at it.
If the loan forgiveness goes through without Congressional approval then I am sure the next Republican president will find similar loopholes to forgive loans and hand out money to rich people and big corporations without due process. Supporters of Biden’s loan forgiveness program are shooting themselves in the foot by setting a bad precent for the Executive Branch to hand out free money to anyone they please.
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Isn’t that what the HEA says? That the Secretary of Education has the statutory power to waive and compromise federal student loan debt?
EDIT: Here’s a legal opinion that is in opposition to my opinion, but makes for an interesting read:
Is Student Loan Forgiveness By Executive Order Legal?
Some politicians are asking President Biden to sidestep Congress and provide student loan forgiveness by executive order. But is that legal?
thecollegeinvestor.com
Specifically, 31 CFR 902.2 allows for debt forgiveness if the debt costs more to collect, or if it takes an unreasonable amount of time to collect. It’s probably best for those low balance/no income therefore no payment borrowers to get dropped from loan servicing (since we pay per head for that service).
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Yeah, you guys seem to be losing the fact that the government owns the debt. Biden can't just go to Wells Fargo and make them forgive your mortgage. Student loans are really the only debt he can actually forgive. (Stating this isn't an endorsement)
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And there’s functionally no legal recourse for student loans. You can foreclose on a house, and credit card debt drops like panties at a pharmacy conference in bankruptcy.
It actually encourages people to go abroad to take advantage of the foreign income tax exclusion (like $125k/yr ish) and run out the clock on student debt using IDR, which would deprive the US of tax revenue during the most productive two decades of a person’s life.
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Bruh, Fannie had been publicly traded since like the 70s or something. It's directed by the government, but it's not the same.
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Can't they give a 10k tax credit to everyone instead? That way everyone benefits, not just people who went to college and didn't pay their loans.
Whee.More money chasing less goods.
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Just like these farmers -right?
how about all of the other corporate bail outs?
USDA announces $1 billion in debt relief for 36,000 farmers
The money will go to borrowers experiencing issues including drought and supply chain bottlenecks.
www.desmoinesregister.com
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Just like these farmers -right?
how about all of the other corporate bail outs?
USDA announces $1 billion in debt relief for 36,000 farmers
The money will go to borrowers experiencing issues including drought and supply chain bottlenecks.www.desmoinesregister.com
Nothing to do with this topic.
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I disagree- you said people need to pay their bills, doesn't this apply to farmers as well? They knew what they were getting into when they took out the loans to buy their equipment/land?
I saw this as a son of a farmer - who received a lot of government aid growing up, but whose father doesn't understand anything political outside his town of 1500 people. When I he was bitching about "people living off the government" I asked him how much in government aid he received in the past decade? He claimed it wasn't much, it was actually more than my wife has made during that period working full time with a masters degree (PT). Those is glass houses shouldn't throw stones.
I also agree with helping most farmers in these situations, we need food, but I draw the line at the large corporate handouts that are taking over the family farm.
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Everyone in this country needs to pay their bills (businesses, institutions, and individuals).
However - about 15 years or so ago we decided that our economy can no longer sustain people paying their bills so the “too big to fail” bailouts were devised.
Now - the too big to fail concept is bleeding all over every aspect of the economy and so many are asking the question, “if they can get bailed out, why not us?”
And frankly - I think it’s a good question. The answer to this question though is obviously that we can not afford it but the population is starting to see through the money printing for specific self serving agendas and it has reached a critical mass of bailouts, handouts, and money printing to keep it all afloat.
It is an interesting time in history as all of these events have been hastened and so many entities/individuals want their piece of the pie…. While everyone has their hand out waiting for their piece - corporations throughout the world have discovered how to squeeze entire populations, both at work and in their pocketbook, and have essentially vacuumed up about 80% of this economies excess wealth leaving our lower, and lower middle class, without the resources to take care of their families.
There are a lot of pissed off people in this world right now and to say, “you need to pay your bills” carries the weight of countless platitudes which really does not acknowledge that a lot of the economic disparity which we see is out of the debtors control…
Looking back now at the way my loans are structured, the way my school played the student loan game like a fiddle, and how the debt itself has turned into a means to simply take advantage of me in the strongest way possible just makes me realize what so many people are pissed off about these days.
No worries though - I’ll pay mine according the the terms of my loan…. This means I’ll pay as little as possible and if I end up below my principle by the time I reach forgiveness I will consider it a success
On topic, if Dems are planning on continuing this program for future, what prevents schools from simply increasing their tuition?
In that case how’s this program effective? Since it’s only schools who are benefiting at the expense of taxpayers and students are paying essentially the same amount?
In that case how’s this program effective? Since it’s only schools who are benefiting at the expense of taxpayers and students are paying essentially the same amount?
Nothing. It merely throws a windfall to schools and borrowers at the expense of taxpayers and consumers (via higher inflation) without solving the actual problem.
It's a vote buying scheme.
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Why is this always brought up during student loan forgiveness conversations? I am against corporate handouts too. It's okay to be against both. I am against handouts and bailouts in general. So if you don't support corporate handouts then I'm not sure why you support student loan handouts, unless of course you are counting on your loans being forgiven?
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I strongly agree with this. We let pandora out of the box many years ago - now we have to deal with the social implications of a possible “bail out” and/or “handout” at every corner now.
At this point it has accelerated - you have to bail someone out every day to keep things going. At this point it does not matter what your opinion is though, the machine is in motion and nothing can stop it.
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I am not a big supporter of blanket student loan forgiveness. I paid my 6 figure loans off. I am a proponent of student loan reform thou as we need to fix the underlying problem.
I am simply pointing out how many seem to be complete hypocrits (again, not saying you are if you are truly against corporate handouts) - but I am to the point where I believe in democratic ideals, I just feel the vast majority of politicans are not trustworth in the least. Policitcally speaking I am very close to Biden, but I feel his time came and went 15 years ago.
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that is why we need to develop laws/rules that limit what schools qualify for loans. Put some sort of restrictions on tuitions raises and what percentage of expenses can go to capital improvements (to stop the battle of who can have the nicest dorms) and even develop some sort of formula that rates what percentage of graduates get jobs in their field/income relative to their loans to make schools actually promote degree pathways that benefit the students vs benefiting the pockets of the colleges.
I wouldn’t be against the idea of lowering student interest rate ie. < 3%.
Student loans are way too costly in this country and if your parents didn’t help out or you didn’t go into career that pays high six figures such as being a doctor, you will lag behind in life due to crippling debt.
Student loans are way too costly in this country and if your parents didn’t help out or you didn’t go into career that pays high six figures such as being a doctor, you will lag behind in life due to crippling debt.
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I think it is brought up because the actual agitating party (GOP) consistently backs corporate tax breaks while simultaneously seeks to tear down loan forgiveness.
The # of elected officials who both vote against corporate welfare AND student loan forgiveness (and/or safety net expansion) is probably a small handful.
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It really all started with the S&L crisis/bailout, and kind of went on from there (TARP, auto industry, etc…)
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First it was the mortgage crisis, now the student loan crisis. Next will be the retirement crisis. The median 401k balance is 33k. Guess who gets to bail them out when the time comes?
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S&L crisis definitely set up the mortgage crisis down the road. Government intervention runs deep.
Retirement crisis…I mean, isn’t that why we have social security? That’ll need to be shored up, though.
Those on this forum are far more likely to carry student debt than to own big corporations. A lot of posters here have a personal stake in getting student loans forgiven, hence the heavy bias toward forgiveness.
This was done in a bipartisan effort to prevent a complete economic collapse from the COVID shutdowns although I do agree that the oversight of the program was a disaster, likely intentionally.
Biden is trying to push a major inflationary policy during a period of record low unemployment and high inflation, right before a midterm election.
Too bad. I have no student loan to forgive!
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I actually hope a protracted lawsuit will halt payments again (heh heh heh)
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I honestly wish I bought Crypto or Stocks back in 2008-2010 with some of that student loan money.
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Not sure if crypto existed back then.
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And in other news, big expansion of benefits for PSLF folks via negotiated rule making process effective 7/1/23 that is so technically difficult to explain in a one-sentence headline, it will likely go unnoticed by pretty much everyone who pretends to care about this stuff:
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Just give up. You old geezers quit whining. It's a done deal, students will get some loan forgiveness who cares. The whining has been going on for years before this whole forgiveness thing passed. I'm not getting the 10k forgiveness but oh well I'm glad others will see some relief.
Seeing all this complaining about the passage of loan forgiveness reminds me of the election deniers unwilling to accept the results of the presidential election.
Biden ran on a student loan forgiveness platform, the people voted, and the will of the people is being carried out.
Seeing all this complaining about the passage of loan forgiveness reminds me of the election deniers unwilling to accept the results of the presidential election.
Biden ran on a student loan forgiveness platform, the people voted, and the will of the people is being carried out.
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Votes which he bought by carrying out an executive order now knowing that there is a decent chance the courts will strike it down, instead of passing it through Congress like Trump did with the PPP that we all use as a whatsboutism.
I know some kid who invested in crypto early and retired at like 17 or 18 running 5 successful restaurants. Im so jelly.......
Bet far more people have lost their shirts in crypto than those who have made any significant gain. But they don’t tell you about the former.
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OLD geezer, at your service! I paid off my student loans decades ago! Made sure my two sons graduated college with NO student debt. BUT I am all for student loan forgiveness! Our taxes are going to many other frivolous or illegal/unethical causes, WHY not help the poor students/grads!
I am happy to foot the bill! Unfortunately, neither the Republicans nor the Democrats are looking out for the well fare of the people. This is just a political platform for Biden, if it fails to go through, he can say "well I tried" ALL fun and games.
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Student loan forgiveness is good for the economy. Instead of people paying off student loans, you'll have people spending more -> more demand for goods -> companies hire more workers to produce more products -> more products sold -> higher profits -> stock values go up
Yeah I definitely know way more people who have lost. That 1 person is literally the only one I know who won
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Yup, and he also went through Congress to extend administrative forbearance. Oh, wait,
owlegrad
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Don’t confuse the issue with facts.
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Why don't they forgive mortgages, auto loans, healthcare bills, and credit card bills then.
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Most countries don’t have medical or educational debt and they seem to get on ok. Maybe let’s try doing that?
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To be clear I want to have it every which way, not just both ways.
As for the rest, yeah our taxes are low but what we get for them is also pretty poor. There is no way around the fact that we pay more for healthcare and get less for it. I don’t have the studies to prove the same is true in education but it certainly seems likely to me that would be the case.
As for access, yes that is a good point that I don’t have an easy answer for.
Your point about it being an abuse of power is just bad faith arguing. Even if it had gone through congress you would still be objecting to it.
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