No, Biden Can't Forgive Student Loans By Executive Order

[LetMyPeopleVote]

President Biden does not have the power to cancel student debt

Link to tweet

Advocates of debt cancelation by executive order point out that the Higher Education Act gives the Secretary of Education power to “enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired.” This provision would seem to give the Secretary broad power to cancel student debt.

But as financial aid expert Mark Kantrowitz notes, another part of the statute limits the secretary’s authority. He only has the power to cancel obligations owed to the U.S. government “in the performance of, and with respect to, the functions, powers, and duties, vested in him by this part.”

In other words, the Secretary of Education only has the power to forgive student debt when Congress gives it to him.

When President Biden has canceled student debt, it has always been under the authority of a specific program authorized by Congress. Borrower defense is one example: Congress gives the Secretary of Education authority to cancel debt after instances of outright fraud. Congress also allows the secretary to cancel debt when borrowers experience a total and permanent disability. Borrowers who work in public service for ten years can also receive a loan discharge.

In each of these circumstances, Congress created a specific provision for loan cancelation, and required borrowers to meet certain conditions before receiving forgiveness. If the Secretary really had the broad authority to cancel student loans whenever he saw fit, Congress wouldn’t need to create specific programs such as Public Service Loan Forgiveness. The very existence of those programs proves the limits of the executive branch’s authority.....

The debate over whether the President Biden can cancel student debt with the flick of his pen is a distraction. He can’t, but there are better solutions on the table. Congress and the Department of Education should work together to put them into practice.

[NurseJackie]

1. Good.

[MineralMan]

2. Whatever power he might have would only be for

direct loans specified by and administered by the federal government. One of the problems is that many students have refinanced their loans through private lenders. The President, and the government in general, has no authority to forgive any private loan, unless some specific legislation allows that.

Right now, I've been seeing TV ads trying to get people with student loans to refinance them. I haven't looked at the fine print, but the lenders offering those things will have language in the loan agreement in which the borrower gives up any right to have the loan forgiven, I'm certain. Once a borrower refinances a government-backed student loan through a private lender, the borrower can lock him or herself into whatever the terms are for that new loan.

Catch-22.

Beware of such refinancing. Read the fine print very thoroughly or have an attorney read it and explain it. You may be locking yourself into something you didn't realize.

[JustAnotherGen]

3. Not only is the conversation a distraction

It diminishes the importance of voting rights. It turns the conversation BACK on the Democratic Party.

The evil party is the GOP - who at the state level have rammed through law after law of disenfranchisement.

This must be done. Everything else has to stop - Voting Rights Now! IDGAF about the SALT Cap, Student Loans, Confederate Statues, Bobo, etc. etc.

[leftstreet]

4. Then why did he say that he could?

From August:

'I will not make that happen': Biden declines Democrats' call to cancel $50K in student debt
Biden said he was prepared to cancel $10,000 in debt and the interest but anything more than that would require congressional action.

[Budi]

5. Maybe they should just use their Congressional powers & WRITE A BILL.

'I will not make that happen': Biden declines Democrats' call to cancel $50K in student debt
Biden said he was prepared to cancel $10,000 in debt and the interest but anything more than that would require congressional action."

Just whch 'Democrats' have been blastng this anti-Biden populist message since Biden took Office?

DINOs

[leftstreet]

6. Doesn't answer my question n/t

[Budi]

7. It answers ALOT of questions.

"The debate over whether the President Biden can cancel student debt with the flick of his pen is a distraction. He can’t, but there are better solutions on the table. Congress and the Department of Education should work together to put them into practice."

He forgives what he's allowed to by law.
(The part they are saying in their anti-Biden messaging)

[leftstreet]

9. But I only had one

Why did he say he could? Do you think he was misinformed?

[JustAnotherGen]

11. Congress MUST be onboard with this

Pelosi won't allow that to happen without congressional oversight and it would most likely end up in courts for years.

He can't cancel loans made by private companies.

I wasn't eligible for loans until half way through my Sophomore year when Sallie Mae offered unsubsidized loans (1992/1993). I get *it* as I had to work during school to pay my interest charges as I had ZERO relief on that while attending school. I get the cost of university has increase dramatically since 1995. But my loans were only through the government.

I *think* a lot of people refinance through private companies - and that's where we got 'caught'.

[JustAnotherGen]

8. This was initially

One of his primary opponent's ideas that he brought into the 2020 platform.

https://www.kpcc.org/npr-news/2021-12-07/biden-pledged-to-forgive-10-000-in-student-loan-debt-heres-what-hes-done-so-far

*Total and permanent disability discharge:

*Borrower defense and closed-school discharge

*Public Service Loan Forgiveness (PSLF) (This has discharged $2B in debts)


Two Doors - 2nd Door

But Biden doesn't seem eager to try this door. For one thing, he says, it's not certain that canceling student loans with the stroke of his pen would hold up in court, admitting in a February 2021 town hall that "I don't think I have the authority" to cancel $50,000 per borrower.

And Biden is not alone in his skepticism. "The president can't do it," said House Speaker Nancy Pelosi, D-Calif., speaking to the media in July. "That's not even a discussion."

Whether Pelosi's conclusion was driven by facts or political expediency (read: giving Biden cover for not keeping a campaign promise), Biden has resisted acting unilaterally.

There's also the matter of cost. Again, forgiving $10,000 per borrower would come with about a $370 billion price tag, according to the Brookings Institution. Forgiving $50,000 per borrower could cost about $1 trillion.

[George II]

12. He said he was prepared to cancel $10,000 in debt and interest, but not for everyone who owes.

[leftstreet]

13. Okay. So he was correct that he can do it n/t

[George II]

14. He's already cancelled $12B and he's reaching the saturation point of programs available to him.

[LetMyPeopleVote]

30. $1 Trillion is what it will cost to cancel debt at 50k person and $1.6 to pay all debt.

Link to tweet

[LetMyPeopleVote]

20. You are wrong

Link to tweet

[Hortensis]

22. THIS. Please, guys, contempt for truth is destroying us as a people.

And rotting our brains as individuals.

[leftstreet]

34. I don't think so

I wasn't talking about "broad student loan forgiveness," unless you've accidentally responded to someone else.

The subject was the 10k he said he could eliminate

This thread confirms that he did indeed say he could and would do that

[LetMyPeopleVote]

35. I disagree

Read the material posted

[leftstreet]

36. This has been asked and answered

He said he'd cancel 10k

Period

Banging on about anything else is just noise

[LetMyPeopleVote]

37. Read the material -You are wrong

[leftstreet]

39. Read the material. -You are wrong

This is Biden speaking directly

Apr 7, 2021, 8:01 AM

"My point is: I understand the impact of debt, and it can be debilitating," Biden said at the town hall. "I am prepared to write off the $10,000 debt but not $50 [thousand], because I don't think I have the authority to do it."

Biden has since asked the Justice Department and the Education Department to review his authority to use executive action to cancel student debt, indicating he may act on this promise. He may go even further, as White House Press Secretary said in early April that the $50,000 cancelation figure hasn't been ruled out. But nearly three months into his presidency, he hasn't acted on this yet.

https://www.businessinsider.com/student-debt-cancelation-biden-campaign-promise-public-college-hbcu-2021-4

He clearly indicated he could and would cancel 10K, but was unsure of his authority to do more. If you want to argue he misspoke and didn't actually have exec authority to do the 10k, that's fine. Otherwise we'll just have to disagree.

[LetMyPeopleVote]

40. Again, you are WRONG yet again

Why are you attacking the POTUS? The material posted on this thread show that you are wrong.

[KPN]

24. He did say that. Good question.

[LetMyPeopleVote]

29. Biden pledged to forgive $10,000 in student loan debt. Here's what he's done so far

Here are some facts
https://www.npr.org/2021/12/07/1062070001/student-loan-forgiveness-debt-president-biden-campaign-promise

The Biden administration's approach to student loan relief began with improving, extending or expanding a handful of programs that were already on the books.

"We're working really hard to get students the relief that they're entitled to" through these preexisting programs, Undersecretary of Edu

While it's not loan forgiveness, Biden extended the pandemic pause on federal student loan payments; that pause is now slated to lift in February. His other actions essentially keep promises the U.S. government had already made to borrowers — rather than make new ones. For example:

Total and permanent disability discharge: In August, Education Secretary Miguel Cardona announced that the department would erase the federal student debts of thousands of borrowers with permanent disabilities. A 2019 NPR investigation found that, even though eligible borrowers have been legally entitled to a full discharge of their loans, the process was so complicated that fewer than half were able to shed their debts. The latest data from the Education Department suggests that these changes will help at least 370,000 borrowers drop more than $6.5 billion in student debts.

Borrower defense and closed-school discharge: The Biden administration has dramatically expanded efforts to help students who have been defrauded by for-profit colleges and/or whose schools have been forced to close. Defrauded students who previously filed "borrower defense" claims but were given only partial relief under Trump administration rules will now see the rest of their federal student loans discharged.

Public Service Loan Forgiveness (PSLF): The program meant to forgive borrowers' debts after 10 years of public service and steady loan payments has been notoriously stingy, with complex rules and serial mismanagement pushing out many eligible borrowers. In October, though, the department used its expanded pandemic authority to retroactively loosen those rules and give borrowers credit for disqualified loan payments. According to the department, the overhaul has already forgiven $2 billion in debts.

Through these efforts, the Education Department says it has discharged or is in the process of discharging roughly $12.7 billion in student debt, affecting more than 638,000 borrowers.

[MichMan]

10. In 2010 student loan interest was included in the ACA to offset health care costs

Congress had the opportunity to make those interest rates much lower, but needed the $$ from college students. Some of the very same people who enthusiastically supported it back then seem to have forgotten now.

[fescuerescue]

15. Yes but there are PLENTY of loop holes here

For instance. He could order no payments or interest on student loans for 100 years.

and since student loans are forgiven on death, this is effectively the same.

And we know he has the power to stop collections on student loans, because he did it for the last year.

[mopinko]

16. things that make you go hmmm. just who is pushing this?

there's a lot more propaganda uptake on the left than most of us want to admit.
hammering wedges is what they do.

[George II]

18. Some of the more outspoken members of Congress have student debt themselves.

[George II]

17. This from yesterday afternoon:

NEWS: Biden admin is considering extension of student loan relief amid omicron surge & pressure from Dems.

@usedgov says it may postpone plan to restart monthly payments Feb 1:

"Later this week, we will be announcing whether to extend the pause further"

Link to tweet

[George II]

19. Biden just extended the payment pause to May 1

https://www.democraticunderground.com/index.php

[LetMyPeopleVote]

21. Biden administration extends pause in federal student loan payments another 90 days

Link to tweet

[bucolic_frolic]

23. Match loan repayments to income and peak earning years

What's a heavy lift in your 20s should be manageable with a good career in your 40s and 50s.

[SYFROYH]

25. Elizabeth Warren is greater than Forbes Magazine

The logic is flawed. The author claims that because Congress has authorized other forgiveness programs that proves the President can't do it by Executive Order.

It could well be that the power of the presidency and congress can both address students loans.

[Fiendish Thingy]

26. Then why did Biden campaign on forgiving a portion of student debt?

Was he lying?

[LetMyPeopleVote]

27. You are WRONG

Here are some facts

Link to tweet

[LetMyPeopleVote]

28. Today, I announced my Administration is extending the pause on federal student loan repayments

Link to tweet

[mcar]

31. Quick! Someone tell members of congress

who tweet incessantly about it.

[Xolodno]

32. Any amount of forgiveness is still a band aid on a larger problem.

What is needed is:

1. More favorable income to debt based payments.
2. Gradual forgiveness of the loan that eventually results in complete termination at retirement.
3. Give credit for volunteering, be it trail maintenance at a federal park, red cross, etc. There has always been a call to institute a National Service in lieu of Military, but ultimately gets shot down. This would be a great way to do that, our parks, streets, community, etc. would benefit immensely at a fraction of the cost to hire and devote a paid employee who doesn't have the resources to keep up.

[MichMan]

33. No, the larger problem is why the costs of college have escalated so much, compared to inflation

That is the elephant in the room, that everyone seems to want to ignore.

Also your #2 is not feasible.

a) People could just pay zero and wait it out until they claimed they were retired, or "retire" at the age of 30, wait for the forgiveness to kick in, and then start working again.

b) A grandparent taking out loans under their name for a grandchild would never have to pay back a penny

[Xolodno]

38. I consider the cost of tuition as a different problem.

But yes, it indeed is an issue and who knows where to start? Cuts to state university systems, for profit schools, etc. There are numerous factors.

And I'll disagree. My retirement age is 62 for SS, which is what I was implying in the case of retirement. And I should probably have made it more clear, but, forgiveness is contingent on making a basic payment. As I stated in item 1, a better income based repayment plan. Yes, you may make six figures, but in places like LA, SF, Seattle, etc. its chump change in comparison to the cost of living. And if income is so low, then sure, make the payment a dollar with the exception of being unemployed, health issue, etc. But if you are making six figures in an area that doesn't have a high cost of living, then yeah, pay the piper.

And a grandparent or parent should never have to take a loan to fund an education for their children or grandchildren. That just shows how broken our system is currently.

[SunSeeker]

41. Nobody has had to make a student loan payment for the last 2 years. nt