Biden administration announces partial student loan forgiveness

[Politesse]

So, let's say we do provide at least some student loan forgiveness. What happens going forward? Are we going to do it again in another 10 years, ad nauseum?

That is my problem with this -- I don't like the thought of a future where policymakers refuse to fix any of the serious and substantial problems with the corporate-educational complex, on the grounds of "we forgave everyone's loans, what more do you want?" Like a company that concedes a one time pay raise to buy off the union for a few years, but refuses to touch the contract that actually created the problems.

 

[Swammerdami]

I've not been a fan of student loan forgiveness but this article in New Yorker may change my mind. Click now: "This story is free to read for a limited time."

The article touches on various matters; here are just two points that caught my eye:

. . . And, owing to negligent bookkeeping, I.D.R.’s promise of cancellation has proved to be mere mirage: as of 2021, more than four million borrowers could have accessed I.D.R. loan cancellation, but only a hundred and fifty-seven had ever received it.
. . .
The lack of information around student loans infuriates borrowers and social scientists alike. “I’ve never seen a nationally known topic that is so void of information,” Daniel Collier, an assistant professor of higher and adult education who researches income-driven-repayment programs, said. But, perhaps more profoundly, a lack of clear information has allowed the system to operate without accountability.

 

[lpetrich]

Student-loan forgiveness is now at the Supreme Court.

Business lobby, GOP officials urge SCOTUS to reject student debt relief - POLITICO - Feb 6

A range of conservative groups and Republican officials are lining up to urge the Supreme Court to nullify President Joe Biden’s debt relief plan. The slew of amicus briefs poured into the court on Friday as the justices prepared to hear oral arguments later this month in two cases challenging Biden’s loan forgiveness program.

New student loan plan faces funding crisis over debt relief : NPR - Jan 10

The Biden administration is unveiling an ambitious new student loan repayment program today that will be more generous, flexible and forgiving than previous plans — but it's unclear how or when the administration will be able to fully implement it.

The U.S. Department of Education says proposed updates to its income-driven repayment plan would, among other things, cut loan payments in half for undergraduate borrowers, but its rollout could be complicated by the fact that the Office of Federal Student Aid (FSA) — the agency that oversees the government's student loan portfolio — is in an unexpected funding crisis, created by a political fight between Congressional Republicans and Democrats, and the White House.

 

[Jimmy Higgins]

Curious how they'll get around the standing issue with SCOTUS.

 

[Worldtraveller]

I think SCOTUS only cares about standing when it's something they don't want to rule on.

This conservative court will probably happily side with the big businesses/banks that don't really have standing because...they can.

 

[Derec]

New student loan plan faces funding crisis over debt relief : NPR - Jan 10

The Biden administration is unveiling an ambitious new student loan repayment program today that will be more generous, flexible and forgiving than previous plans — but it's unclear how or when the administration will be able to fully implement it.

This plan would greatly reduce the payments for many borrowers - and not just low income ones either, but many middle-income folks too, who can certainly afford to pay back the money they freely borrowed.
It will make it less likely that people will repay their loans in a timely manner - or ever - and it will make it more attractive to take out huge loans to study at some boutique private college effectively at taxpayer expense.

Congress is supposed to have the power of the purse. Stuff like this should be passed as a law, not as a presidential decree.

 

[Oleg]

Congress is supposed to have the power of the purse. Stuff like this should be passed as a law, not as a presidential decree.

This is only true if you don’t like the president. But if you like the president, then Congress shouldn’t get in the way of all his awesome ideas.

 

[laughing dog]

New student loan plan faces funding crisis over debt relief : NPR - Jan 10

The Biden administration is unveiling an ambitious new student loan repayment program today that will be more generous, flexible and forgiving than previous plans — but it's unclear how or when the administration will be able to fully implement it.

This plan would greatly reduce the payments for many borrowers - and not just low income ones either, but many middle-income folks too, who can certainly afford to pay back the money they freely borrowed.
It will make it less likely that people will repay their loans in a timely manner - or ever - and it will make it more attractive to take out huge loans to study at some boutique private college effectively at taxpayer expense.

Congress is supposed to have the power of the purse. Stuff like this should be passed as a law, not as a presidential decree.

Congress passed the law with ambiguous language that permitted the Biden interpretation. Whether the interpretation will hold SCOTUS scrutiny is a different matter.

 

[Oleg]

Congress passed the law with ambiguous language that permitted the Biden interpretation.

Eh.

Pelosi says Biden doesn't have power to cancel student debt

House Speaker Nancy Pelosi on Wednesday said President Joe Biden doesn't have authority to forgive student debt. "That's not even a discussion," Pelosi said.

www.cnbc.com

 

[steve_bank]

He does not have the authority to do that.

Just as Trump did not have the authority to retask funds that congress apppropiated for oter things on his wall. Congress let him get away with it.

It is about separation of powers, several tested under Trump.

Constitutionaly it is comperes that deals with spending. We can't call out Trump and give Bden a pass.

 

[laughing dog]

Congress passed the law with ambiguous language that permitted the Biden interpretation.

Eh.

Pelosi says Biden doesn't have power to cancel student debt

House Speaker Nancy Pelosi on Wednesday said President Joe Biden doesn't have authority to forgive student debt. "That's not even a discussion," Pelosi said.

www.cnbc.com

The act’s language is sufficiently ambiguous so that the Biden’s administration’s expansive interpretation possibly legitimate. It is up to the SCOTUS.

 

[bilby]

The law is whatever you can pay a lawyer to say it is, unless and until someone persuades a judge to say it's not.

 

[barbos]

The law is whatever you can pay a lawyer to say it is, unless and until someone persuades a judge to say it's not.

What a country!

 

[Jimmy Higgins]

Congress passed the law with ambiguous language that permitted the Biden interpretation.

Eh.

Pelosi says Biden doesn't have power to cancel student debt

House Speaker Nancy Pelosi on Wednesday said President Joe Biden doesn't have authority to forgive student debt. "That's not even a discussion," Pelosi said.

www.cnbc.com

The act’s language is sufficiently ambiguous so that the Biden’s administration’s expansive interpretation possibly legitimate. It is up to the SCOTUS.

First SCOTUS needs to actually demonstrate the states have any standing to even bother with an opinion. At least, that was how things used to be before the MAGA bench was finished.

 

[Jimmy Higgins]

Congress is supposed to have the power of the purse. Stuff like this should be passed as a law, not as a presidential decree.

This is only true if you don’t like the president. But if you like the president, then Congress shouldn’t get in the way of all his awesome ideas.

Congress has become useless thanks to pre-Civil War level animosity. We have situation where a generation of college grads are running into problems with the high cost of everything, housing is priced well out of their range in many areas... and they need to pay back loans for college degrees that used to be worth more than they are now. Something needs to be done, and typically this comes from Congress. This is a Congress thing. But this, like many other problems (see immigration), the GOP refuses to actually address any of it. Even when W had an immigration plan, the GOP balked.

So that leaves Presidents with a need to fix an on-going problem within the limits of the authority they have. The executive branch has been reaching out further and further, and right now Biden is trying to address an issue within some technical set of limits because this problem needs to be dealt with.

 

[Jimmy Higgins]

New student loan plan faces funding crisis over debt relief : NPR - Jan 10

The Biden administration is unveiling an ambitious new student loan repayment program today that will be more generous, flexible and forgiving than previous plans — but it's unclear how or when the administration will be able to fully implement it.

This plan would greatly reduce the payments for many borrowers - and not just low income ones either, but many middle-income folks too, who can certainly afford to pay back the money they freely borrowed.

This is a trap. Do it for all, people will complain that some didn't need the help. Do it for the needy, people will complain it isn't fair to those paying back their loans. Don't do anything, people will complain that Biden doesn't care.

It will make it less likely that people will repay their loans in a timely manner - or ever - and it will make it more attractive to take out huge loans to study at some boutique private college effectively at taxpayer expense.

The trouble is, it is harder today than it has been to find a job, find affordable housing (needing a sizable payment), pay the health care insurance. 25 years ago, this was so much easier. College could be had for $10,000 a year, get $20k in loans, pay it off over 10 years. Housing hadn't gone through two bubbles yet, efficiency hadn't eliminated as many jobs, taxes weren't starved as much at the local level.

 

[Elixir]

It will make it less likely that people will repay their loans in a timely manner - or ever - and it will make it more attractive to take out huge loans to study at some boutique private college effectively at taxpayer expense.

This reminds me of how Trump can’t imagine anyone who doesn’t lie cheat and steal like he does. That’s “normal” in his sick mind.
When we let such people set policies or subscribe en masse to their cynical projections of their own failings, it becomes a self fulfilling prophecy of doom.

 

[laughing dog]

It will make it less likely that people will repay their loans in a timely manner - or ever - and it will make it more attractive to take out huge loans to study at some boutique private college effectively at taxpayer expense.

This reminds me of how Trump can’t imagine anyone who doesn’t lie cheat and steal like he does. That’s “normal” in his sick mind.
When we let such people set policies or subscribe en masse to their cynical projections of their own failings, it becomes a self fulfilling prophecy of doom.

Moreover, the real question is whether the policy provides a net benefit. No policy can meet the standard of no cost. So opposition based on a potential cost and nothing else means no change whatsoever. But the status quo has a cost. Hence the such a standard (no change if there is a cost) is literally irrational.

 

[Oleg]

Congress is supposed to have the power of the purse. Stuff like this should be passed as a law, not as a presidential decree.

This is only true if you don’t like the president. But if you like the president, then Congress shouldn’t get in the way of all his awesome ideas.

Congress has become useless thanks to pre-Civil War level animosity. We have situation where a generation of college grads are running into problems with the high cost of everything, housing is priced well out of their range in many areas... and they need to pay back loans for college degrees that used to be worth more than they are now. Something needs to be done, and typically this comes from Congress. This is a Congress thing. But this, like many other problems (see immigration), the GOP refuses to actually address any of it. Even when W had an immigration plan, the GOP balked.

So that leaves Presidents with a need to fix an on-going problem within the limits of the authority they have. The executive branch has been reaching out further and further, and right now Biden is trying to address an issue within some technical set of limits because this problem needs to be dealt with.

Yep. When you like the president, then separation of powers is an annoying hindrance to be ignored. Yet, one can understand Pelosi jealously guarding the power of the purse. Otherwise, we have dictatorship.

 

[Jimmy Higgins]

Congress is supposed to have the power of the purse. Stuff like this should be passed as a law, not as a presidential decree.

This is only true if you don’t like the president. But if you like the president, then Congress shouldn’t get in the way of all his awesome ideas.

Congress has become useless thanks to pre-Civil War level animosity. We have situation where a generation of college grads are running into problems with the high cost of everything, housing is priced well out of their range in many areas... and they need to pay back loans for college degrees that used to be worth more than they are now. Something needs to be done, and typically this comes from Congress. This is a Congress thing. But this, like many other problems (see immigration), the GOP refuses to actually address any of it. Even when W had an immigration plan, the GOP balked.

So that leaves Presidents with a need to fix an on-going problem within the limits of the authority they have. The executive branch has been reaching out further and further, and right now Biden is trying to address an issue within some technical set of limits because this problem needs to be dealt with.

Yep. When you like the president, then separation of powers is an annoying hindrance to be ignored. Yet, one can understand Pelosi jealously guarding the power of the purse. Otherwise, we have dictatorship.

Thanks for taking a subtle approach and making it sound like it was a fanboy response.

The boundaries between the Executive and Legislative Branches aren't black and white. It is very gray and muddled.