Saturday, August 27, 2022

Does the student loan cancellation by the 46th President lack sufficient legal authority? Quite possible!

The fact that two different U.S. Departments (Education, Justice) immediately issued long legal justifications for this massive student loan cancellation might be an indication that perhaps not all is right.
Caveat: I am not a legal expert.

The Covid-19 pandemic is essentially over so it can not serve as a legitimate authority! 

Higher price inflation is not a national emergency either that requires student loan cancellation. Au contraire higher inflation will actually wipe out existing student debt over time, because many indebted students will earn significantly higher incomes!

Why the demented and senile 46th President did not negotiate with the universities with their huge endowments to carry their burden in this student loan cancellation is a scandal!

"For the past year and a half, the Office of General Counsel (“OGC”), in consultation with our colleagues at the Department of Justice Office of Legal Counsel, has conducted a review of the Secretary’s legal authority to cancel student debt on a categorical basis. ...
The HEROES Act, first enacted in the wake of the September 11 attacks, provides the Secretary broad authority to grant relief from student loan requirements during specific periods (a war, other military operation, or national emergency ..."

"The Higher Education Relief Opportunities for Students Act of 2003 [a.k.a. Heroes Act], Pub. L. No. 108-76, 117 Stat. 904, grants the Secretary of Education authority to reduce or eliminate the obligation to repay the principal balance of federal student loan debt, including on a class-wide basis in response to the COVID-19 pandemic, provided all other requirements of the statute are satisfied."

The HEROES Act of 2003 is a nice example of bad and sloppy legislation. It was designed to expire in 2005. Then Congress extended the expiry to 2007. In 2007, our lawmakers were to coward and lazy to let it expire and they extended it permanently!
"On August 8, 2020, the Trump administration issued a memorandum instructing the Secretary of Education to pause on student loan payments and interest through December 31, 2020 using the authority granted by the HEROES Act. ..."

The Secretary’s Legal Authority for Debt Cancellation (Education Dep.)

Use of the HEROES Act of 2003 to Cancel the Principal Amounts of Student Loans (Justice Dep.)

Credits: Joe Biden Showered With His Daughter And Does Business With His Son. What Could Go Wrong?

No comments: