U.S. News
Biden Sidesteps Supreme Court with $39 Billion Student Loan Debt Handout
Clear Facts:
- The Biden administration plans to forgive $39 billion in student loan debt for over 804,000 borrowers.
- Rep. Byron Donalds (R-FL) criticizes the move as unconstitutional and warns of potential economic repercussions.
- Despite the Supreme Court’s rejection of Biden’s initial plan last month, the administration remains committed to student loan debt relief.
The Biden administration announced on Friday a comprehensive plan to forgive the student loan debts of over 804,000 borrowers, effectively eliminating more than $39 billion in debt.
This relief will be facilitated through adjustments to income-driven repayment plans.
“For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness,” stated Education Secretary Miguel Cardona.
“By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve.”
Under the revamped income-driven repayment plans, the Department of Education will count payments for borrowers who have made partial, late, or deferred payments.
The adjustments will be made in the coming weeks, and eligible borrowers will be informed via notification.
The Department of Education also mentioned that those eligible for student loan forgiveness will be identified and notified bi-monthly until 2024.
However, this move has come under fire from conservatives, with critics arguing that it ignores fiduciary responsibility.
Representative Byron Donalds (R-FL) criticized the decision as unconstitutional.
“You can’t have an executive that just decides — because of politics — ‘Well, I’m just going to do this,’” Donalds remarked to the Washington Examiner.
“What Joe Biden is doing is dictatorial. It’s unconstitutional, and it should not be tolerated.”
In addition to potential constitutional conflicts, Rep. Donalds warned of a potential economic fallout.
“When you start just forgiving debt, it’s a backdoor stimulus. No. 2, it hurts new loans to be issued in the future,” Donalds stated.
“If it’s now being understood that you don’t have to re-pay debt, then why would people take any care with what they borrow? This creates a serious moral hazard in our economy.”
In response to these concerns, Vice President Kamala Harris asserted that the Biden administration remains committed to student loan debt relief.
She also shared plans for further student loan forgiveness under the Higher Education Act.
The student loan forgiveness plan follows the Supreme Court’s rejection of President Biden’s initial plan to eliminate approximately $400 billion in student loans last month.
John Barnett
July 17, 2023 at 7:40 am
Stop this crap. That’s my money. You need to make shells you said we were out of. WHOS WATCHING OUR CHECK BOOK STOP THIS GIVE WAY THEY SIGNED FOR THE LOAN THEY PAY
Colette C Bishop
July 17, 2023 at 7:48 am
I do not want to pay for someone’s education! I went to school and got a degree and the government did not pay for it! I did! We should not be paying for people’s education when there are millions of people out here who worked for and paid for their own education. Are you going to pay me back? I don’t think so! Stop this, this is score to your tax payers!
wayne Francis gauthier
July 17, 2023 at 8:03 am
It is wrong and unconstitutional. I paid for my college, I am not happy to be paying for someone else’s education. They may the choice to take out loans for education, they need to be responsible and pay them back. The president does not have the right to declare monies to pay off student’s loans. His idea needs to be stopped by the courts or Congress. Congress holds the purse strings for the government, not the president.
sclerogirl
July 17, 2023 at 8:08 am
This is BS. Taxpayers should NOT have to pay off debt of these students who signed a loan document promising to repay the loan. We the American people should not have to be paying their loans.PERIOD>
Vietnam Vet
July 17, 2023 at 8:10 am
Here is the thing,the money they are printing as we speak is worthless.We are 32 trillion in the hole already.No country will take our money any more so it is all BS.I guess we are no longer a free country,but part of the WEF.The schools teach communism,nothing you can use to get a real job.This is how redistribution of wealth works.This is what Obama and his wonderful mate always talked about.America is bad,we have it to good it time to give BACK.The people that get all this free stuff are the ones that have done NOTHING to earn any of it.Just like the people running every thing.We will never vote them out,so you will have to read some history to see how to fix this.
Gerald Scott Ladd
July 17, 2023 at 9:28 am
Two people have filled impeachment papers. The speaker is happy with Joe fucking things up. The speaker needs to be replaced.
Dr. Caligary
July 17, 2023 at 9:36 am
So we can assume that of those people that signed the loan documents their signature/word is no good. Furthermore all those that received loan forgivness should be listed on the credit agencies as loan defaults!
Richard
July 17, 2023 at 9:58 am
Presently, if a debt is forgiven by a lender, the IRS says that loan must be declared as INCOME. will THAT APPLY HERE? will ALL THESE BORROWERS HAVE TO CLAIM FORGIVEN STUDENT LOANS AS INCOME AND DECLARE THAT AS INCOME? we NEED A SHARP TAX LAWYER TO ANSWER THAT QUESTION. also, I WORKED A PART TIME JOB DURING THE SCHOOL YEAR, A FULL TIME JOB AND A PART TIME JOB DURING VACATIONS AND DID WITHOUT A SOCIAL LIFE AND MATERIAL THINGS TO PAY FOR MY COLLEGE EDUCATION. I RESENT HAVING TO PAY FOR SOMEONE ELSE’S COLLEGE WHO IS TOO DAM LAZY TO DO THE SAME. They SIGNED A LEGAL DOCUMENT; NOW MAKE THEM LIVE UP TO IT. Is THIS ANOTHER PLOY BY Biden TO DESTROY THE united states?
Ger
July 17, 2023 at 10:24 am
When is the law going to catch up with Biden’s criminal (treasonous) disregard for the Constitution?
Sandra
July 17, 2023 at 11:21 am
This President has no consideration for thevtax paying citizens of this country. He has no right to spend our money on forgiving student loans. I guess the answer is never trust a Democrat to follow the rules.
T. Smith
July 17, 2023 at 10:36 am
Joe Biden and the Democratic Party whoever is involved with this illegal action should be facing charges of Treason, by going against the SCOTUS decision. The Congress needs to immediately step in and block Biden & his Administration from carrying this out! I personally would like to see everyone involved in this illegal act to face a firing squad!
The Rebel
July 17, 2023 at 11:07 am
The 2008 party started under the undocumented hateful racist muslim #44 is now the Commununist Abortion Party against America !! They control the Re-Pubic Do-Nothing Party ——lock, stock, and barrel !!!!!
Daniel Quigley
July 17, 2023 at 4:30 pm
1st off the Supreme Court has already ruled that the Student Loan Forgiveness in any way shape or form is not only Illegal it’s Unconstitutional. So Dementia Joe and his Moron Handlers are once again trying to circumvent Federal laws. How about just come clean and tell those who not only signed a Contract to obtain those loans but also promised to repay them in full. What should happen is those who owe should not be taking vacations or purchasing new vehicles or even houses until their loan is paid in full. What should have happened to begin with was a mandatory payroll deduction for the loan takin out before taxes so they wouldn’t default as long as they stayed employed. Now if they quit or were fired then Unemployment should never have been allowed to them unless their loan was paid 1st.
Sean Rickman
July 17, 2023 at 10:02 pm
This entity in charge of our country spends money like nothing that I have ever seen.This robot is spending your money,my money like there is no bottom to this well.There is a bottom and I hope that there are enough intelligent people left in AMERICA to vote all of these overspending monsters out of office.They don’t care about people,they only care about votes,power and wealth for them and their wealthy”buddies”,and for only them.