When our Founding Fathers wrote the U.S. Constitution, they put in place a system of checks and balances that would theoretically prevent one branch of government or one person from becoming too powerful. That system only works when it is followed.
On Tuesday, The Epoch Times reported the following:
The Department of Education announced Monday that it will begin notifying more than 804,000 borrowers that their $39 billion in federal student loans will be “automatically discharged in the coming weeks.”
“The forthcoming discharges are a result of fixes implemented by the Biden-Harris Administration to ensure all borrowers have an accurate count of the number of monthly payments that qualify toward forgiveness under income-driven repayment (IDR) plans,” said the administration in an Aug. 14 press release—a month after the forgiveness plan was announced.
The department said that the forgiveness program was part of fixes to address “historical failures” in which “qualifying payments made under IDR plans that should have moved borrowers closer to forgiveness were not accounted for.”
This is the Biden administration’s workaround the Supreme Court decision that declared the student loan forgiveness program unconstitutional. There are a number of problems with this program, but one thing that needs to be looked at is the fact that the government is interfering in a contract. When these loans were taken out, the borrower agreed to pay them back. The government should not and does not have the power to interfere in a private contract.
The article notes the cost of the plan:
According to an estimate by the Department of Education, the SAVE plan will cost $138 billion over a decade.
However, the University of Pennsylvania’s Penn Wharton’s Budget Model predicts the cost to be more than three times that. “We estimate SAVE will incur a net cost of $475 billion over the 10-year budget window,” a July 17 post about the Budget Model said.
The article concludes:
In a June 30 statement, Alfredo Ortiz, president and CEO of Job Creators Network, slammed President Biden for criticizing the Supreme Court order striking down his student loan forgiveness plan and his vowing to find another way to push ahead with it.
“President Biden shamelessly failed to recognize a co-equal branch of government in his remarks,” Mr. Ortiz said. “Rather than respecting the court’s decision, Biden promised more executive overreach to forgive student loan debt. His proposals include expanded income-driven repayment plans and a 12-month grace period when payments are set to restart this fall.”
Please follow the link to read the entire article. It includes the details of how to apply and how the Biden administration claims to be within the law.