Biden’s New Student Loan Scheme Buys Voters: Exploiting a different law to serve his agenda…

Joe Biden Forgives Student Debt Despite the Law

President Joe Biden has recently taken steps to expand student loan forgiveness, raising concerns about the constitutionality of his actions. While presenting himself as a benevolent figure offering relief to struggling college graduates, Biden’s unilateral approach and disregard for constitutional limitations have come under scrutiny.

Last August, Biden used executive authority to redirect hundreds of billions of dollars from taxpayers toward forgiving student loan debt. However, in a 6-3 ruling last month, the Supreme Court sided with those who argued that Biden had overstepped his constitutional authority. Chief Justice John Roberts, writing for the majority, emphasized the need for clear congressional authorization before making significant alterations to the economy.

Undeterred by the court’s decision, Biden pledged to explore alternative means of providing relief. In his latest move, the president has once again resorted to executive action, utilizing a different law and accounting method to justify his actions.

Instead of relying on the previously cited HEROES Act, the administration now points to the Higher Education Act of 1965 as the legal basis for Biden’s actions. However, critics argue that it is a significant stretch to claim that a law from the ’60s grants the Secretary of Education the authority to abrogate student loan contracts, particularly considering the position itself was established 15 years later.

According to the administration, Biden’s latest plan aims to forgive $39 billion in student loans for over 800,000 borrowers. Critics, including some of Biden’s own supporters, raise concerns about the lack of a limiting principle in the justification, suggesting that the scope of forgiveness could potentially grow, leading to more extensive costs and beneficiaries.

Moreover, Biden’s expansion of the income-based repayment system and the reduction of the payment duration before loan forgiveness creates an incentive for borrowers to take out larger loans. This perpetuates the problem of skyrocketing college tuition costs, which have far outpaced inflation rates ever since the federal government’s involvement in student loans.

The Congressional Budget Office highlighted that federal student loan debt increased more than sevenfold between 1995 and 2017, reaching $1.4 trillion in 2017 dollars. Presently, borrowers hold $1.75 trillion in student loans, with the majority being federal loans. This exponential growth does not align with a proportional increase in the value of a college education.

Critics argue that Democrats had long devised this strategy, recognizing that it would be politically safer for Biden to act unilaterally rather than attempting to pass a large-scale entitlement program through Congress. They anticipated legal challenges, counting on Biden to find alternative avenues for implementation, thereby positioning themselves as defenders of student borrowers against Republicans seeking to halt the actions.

Biden handing out cash to students

Education Secretary Miguel Cardona portrays the move as rectifying a broken system, ensuring that deserving individuals receive the forgiveness they need. However, critics point out that it was the Democrats who played a significant role in breaking the system by fueling the exponential growth of student loans. They argue that constitutional authority for such income redistribution is lacking.

Ultimately, the Democrats’ aim appears to be to present themselves as champions of those burdened by student debt while casting Republicans as the adversaries. This political strategy seeks to convince voters that Democrats are working to help them, contrasting with the perception that Republicans are hindering progress. The implications of this approach extend beyond student loan forgiveness and touch on broader debates about entitlement programs and the scope of executive authority.

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