Biden Administration Reportedly Considering Another Extension on Student Loan Payments
“White House officials are now planning to work around the legal obstacles that have been thrown their way.”
This started at the beginning of the pandemic, when Trump was still president. Hasn’t it gone on long enough?
Campus Reform reports:
Biden administration may extend student loan payments again
The Biden Administration is reportedly in talks of once again freezing student loan payments.
The preparation to re-freeze payments comes as a result of a federal appeals court in Texas declaring that Biden’s student loan forgiveness plan is an “unconstitutional exercise.”
White House officials are now planning to work around the legal obstacles that have been thrown their way.
“Although the Biden administration has vowed to defend the program in court, White House officials have in recent days discussed the possibility of extending the debt freeze again if they are unable to move forward with the president’s initial program,” The Washington Post reported.
It is not confirmed that this extension will be implemented.
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Comments
If they feel they must do something, how about just setting the interest rate to 0% and resuming payments? I think that is more within their purview than outright forgiveness.
I agree. Many creditors accept pennies on the dollar to get something, foregoing interest and getting some principal back.
Unsure who lent what to whom, but if it’s the government, why is it making interest off these loans anyway. And commensurate refunds to those who paid their loans with interest.
The student loan program operates at a loss, and a big loss at that. It should be obvious to any economically literate person that you’re not going to make a profit lending 5-6 figures to unemployed 18 year-olds with no credit history and no collateral at 6%. That’s lower than what a person with excellent credit would get on a fully collateralized mortgage.
So, knowing that, charging a nominal interest rate has two functions. First, it helps stretch the same taxpayer subsidy dollars to help more people. Second, it motivates borrowers to keep a lid on their balances, which in turn motivates colleges to control costs.
Every time you sweeten the terms of the loans, to give a little relief to borrowers, colleges swoop in with higher costs and convert that relief into a windfall for themselves. The loans aren’t the problem. They’ve never been the problem. The colleges are the problem.
That won’t buy enough votes. Besides, everything should be free anyway, because.
It won’t take effect until the fall of 2024, naturally.
Or, how about having a 3.8 GPA or better.
I can’t see members of Delta House getting free housing on my dime.
Sure why not, shoot it down then make another paper to try again until you get the judges you want.
Voting is over, fraud and buying votes is done for a year and a half.
The question isn’t really a matter for the courts without a party with standing. It’s a serious mistake to argue for federal court action when there is no constitutional basis for the federal courts to exercise power. And there is a clear constitutional path to address such an egregious overreach of executive authority. It’s called impeachment.
At this point, absent the intervention of a court, the student loan repayments will be suspended for the rest of Biden’s presidency.
The r House could simply deduct the amount of principal and interest foregone from the higher ed budget authorization.
COULD. They haven’t what it takes.
Haven’t what? Integrity? Cojones? Intelligence? Interest in doing their jobs?
My choice would be all of the above.
Are you implying that under the leadership of McCarthy the r house majority would not be willing to use their power to do this?
Surely that can’t be true because DJT provided his endorsement to McCarthy’s leadership bid. DJT wouldn’t back someone incapable of fighting and winning would he? Please reassure me that DJT wouldn’t have put politics over principle in this endorsement.
The real curiosity to me is whether McCarthy even wanted Trump’s endorsement.
healthguyfsu,
Indeed, very curious. Was it a backroom deal of favor trading? Was it something less, something more? Something entirely different?
IMO, it was a case of DJT seeing that McCarthy was likely to win and he choose to back the likely winner. Whatever it was, it most definitely was not a principled stance against the establishment.
McCarthy is the epitome of establishment DC. Choosing to back a creature of the establishment isn’t what we would expect from a politician who claims to be an outsider who’s goal is draining the establishment DC swamp.
Has any agency budget ever really been cut? I don’t mean a slight decrease to the rate of growth but an actually reduction. Maybe only the military but not sure about that.
wait ’til The Dodderer starts packing the courts with people to the left of Sotomayor with less brains
What do you mean “wait”?
It’s happening now
You mean the judge that can’t tell what a woman is? Something a fish can do?
Ukraine military aid bills will be a convenient venue for adding riders to stop this President from abusing his office.
Kind of ironic when the Ukraine military aid itself has been the font of illegal contributions to Brandon, after a good washing through FTX.
The excuse Biden is using to justify his bailing out student loans is the covid pandemic “emergency”.
However, the Senate just quietly voted 62-38 to end the “emergency”.
Biden can of course veto that, but the Senate can also re-do the vote. This time without the distraction of the mid-terms and with full publicity. IMO 67 votes to override his veto won’t be hard to get.
There is a large swath of millenials who need to be spanked and forced to pay back every bit of what they borrowed with interest.
They’re dumber than a box of rocks and think everything should be free and that companies are “gouging” everyone for their products.
Logic and facts won’t sway them. I seriously doubt they even understand anything financial.
There are ZERO grounds to extend payment freezes now that COVID is over.
Besides, Dems keep telling us how great the economy is doing. Then borrowers should have no trouble paying back what they owe.
Socialists love free education and high taxes. Once you break the student loan program it’s all free for students after that. Who would pay back a loan when others don’t have to. High school becomes K-16 because college will be dumbed down so everyone passes. Otherwise racism and “reasons”
So, the law as written isn’t marching orders for the administration to implement, but stuff to work around for the administration to go do what it wants to do.
The delegated goals of the people being “served” isn’t anywhere in that discussion, either. I mean aside from the clients getting paid, the nomenclature administering the distribution, and the demagogs proclaiming the righteousness at hand.