Student-loan forgiveness is dead but Biden’s got an even WORSE plan

Student-loan forgiveness is dead but Biden’s got an even WORSE plan

NEW YORK POST

The Biden administration’s reckless, regressive, and unlawful student-loan cancellation effort is dead. Hurrah.

The Supreme Court just stopped his Department of Education’s attempt to sneak through a one-time pre-election gift to college-educated voters.

The pandemic emergency, the legal pretext for cancellation is now officially over.

And, to top it all off, a majority of Congress, including some Democrats, formally repudiated Biden’s actions in a resolution.

This should restore faith in our democratic institutions and illustrate the importance of the separation of powers.

One branch went too far, and the others intervened.

Nevertheless, now is the time to panic about student-loan forgiveness.

While everyone’s focus has been on the administration’s outrageous cancellation stunt, the DOE has been working tirelessly to accomplish an even more disastrous policy: a new Income-Driven Repayment rule.

Protesters advocating for the cancellation of student debt stand in front of the United States Supreme Court in Washington, DC. Shutterstock

The Supreme Court struck down President Biden’s program writing off hundreds of billions of dollars in federally held student loan debt.  Getty Images

The federal student-loan policy is obscenely complex, but under the Higher Education Act, Congress created a variety of programs to help borrowers who struggle to pay their loans.

Those include Income Contingent Repayment and Income-Based Repayment programs.

With varying terms, these programs limit borrowers’ monthly payments to a percentage of their income. IBR also includes a forgiveness provision after a borrower has made payments for 20 years.

Under the Higher Education Act, Congress created several programs to help borrowers pay their loans. Polaris

The decision to enact these plans was Congress’ to make, so, regardless of whether it was a good idea, that ship has sailed.

The problem is that Congress gave away control over the terms of the various repayment plans.

The HEA delegated to the DOE the power to establish “criteria” for the various plans, including the “annual repayment amounts based on the income of the borrower,” and even the “period of time” a borrower must pay before their loans are forgiven.

And while Congress set out maximum repayment periods, it didn’t set minimums.

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Header featured image (edited) credit:  Biden/USA Today screen shot

Emphasis added by (TLB)

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