Be Cautious: Biden and Harris Keep Making Promises About Student Loans They Can’t Keep
As the middle of August rolls around, it’s not just back-to-school season for countless Americans—it’s also a stark reminder for many about their college loans that need repayment.
President Joe Biden and Vice President Kamala Harris are reaching out to let you know they’re working on it. But here’s the thing: The measures they’ve proposed to cancel or reduce student debt face serious legal challenges and could be unconstitutional.
Just recently, they sent out emails to 25 million borrowers outlining new potential routes for loan assistance. The catch? The rule that would empower these changes hasn’t been implemented yet, and no one knows when it will be. So, it’s a waiting game.
Meanwhile, Biden’s previous attempts to unilaterally erase student debt have hit several legal roadblocks. Biden and Harris keep dangling hope for borrowers, even though they lack the authority to follow through. This could ultimately be misleading and unfair to those hoping for relief.
Courts Keep Halting Biden’s Plans
Let’s get to the nitty-gritty. Recently, the 8th U.S. Circuit Court of Appeals issued a preliminary injunction against Biden’s expanded income-driven repayment plan, known as the SAVE plan. This ruling extends a temporary stay put in place earlier, while the lawsuit continues in court.
Back in June, two federal judges (appointed by former President Barack Obama) also put a stop to the SAVE plan, arguing it was beyond the president’s authority.
To add to the mix, the U.S. Supreme Court last year struck down Biden’s first sweeping attempt at loan cancellation for similar reasons.
Given these challenges, it’s likely the recent cases will end up in the Supreme Court again.
Despite all this, Biden and Harris are pushing forward with more debt forgiveness plans. Yet, without formal rules in place, these plans remain just ideas.
This month, they’ve sent emails to millions of borrowers (who are also voters) to inform them about their costly plans, which they hope to implement before the upcoming presidential election.
And guess who would foot the bill? Yep, us—the American taxpayers.
Can We Afford This Spending Spree?
Our national debt has surpassed $35 trillion. Choices like hefty debt cancellations only add to the deficit.
The latest proposed rule alone would cost the federal government around $150 billion. That’s on top of the hundreds of billions already pledged by Biden to transfer student loan debt to the American public.
“It’s bad enough that the White House is pursuing costly new efforts to cancel student debt,” stated Maya MacGuineas, president of the Committee for a Responsible Federal Budget. “They should not be actively evading potential legal challenges in an effort to circumvent the law.”
MacGuineas described the proposal as “expensive, poorly targeted, and bad for higher education cost and quality,” adding that it “may well be illegal.”
A comprehensive—and costly—debt forgiveness initiative should go through proper legislative channels with Congress passing laws, not merely a presidential order.
Recently, a group of GOP senators reintroduced legislation to put a stop to the Biden-Harris administration’s debt cancellation plans.
“Not only are the Biden Administration’s student loan cancellation schemes morally questionable—forcing hardworking Americans who have already repaid their loans or chose different educational paths to cover others’ debts—but these policies are also wildly inflationary, fiscally reckless, and fail to address the root issue of rising higher education costs,” stated Sen. Mitt Romney, R-Utah.
If Kamala Harris, newly chosen for the Democratic presidential ticket, ever decides to do an interview or take questions, she should explain the administration’s legally dubious actions and the consequences they’ve caused.
