AMAC Exclusive – By Tom Campbell
On Wednesday, President Joe Biden announced he is extending for the fifth time the “pause” on student loan payments and is also unilaterally canceling up to $10,000 of loans for borrowers making less than $125,000 per year. While liberals heralded the move as a major victory, the new policy marks the latest assault on the rule of law by Biden, while the social and economic fallout from the policy may prove to be an anchor on Democrats’ prospects this fall.
For more than two years now, Americans with student loans have not had to make their monthly payments thanks to a moratorium that began in March 2020 as a part of the COVID-19 pandemic-relief policies. But despite having moved out of the pandemic phase and away from economy-destroying lockdowns, Biden has refused to order the resumption of payments after repeatedly promising student loan forgiveness on the campaign trail in 2020.
Following Biden’s election, far-left members of Congress, from Senator Elizabeth Warren to Representative Alexandria Ocasio-Cortez, aggressively lobbied for canceling student loans. Yet thanks to a 50-50 Senate and substantial Democrat opposition to wide-scale student-loan cancelation, there has been no vote on legislation to do so this Congress. As a result, those in favor of the policy turned to pressuring Biden to do it through executive action.
Conservatives have argued that by bypassing Congress in this way, Biden is violating the Constitution, which states: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” Student loans are funded by appropriations made by Congress and drawn from the Treasury. The President unilaterally writing off more than $300 billion in obligations to the Treasury in the absence of Congressional action is therefore a brazen defiance of the law, and flies in the face of the Constitution’s separation of powers.
However, supporters of this claim of executive power counter that Congress has already delegated to the Secretary of Education the authority to wipe out student loans. They cite a provision in the 1965 Higher Education Act that empowers the secretary to “modify, compromise, or waive” student-loan debts.
But it is far from clear that this would effectively allow the executive to authorize expenditures of up to more than $1.6 trillion, the total amount of federal student debt. Likely, the more “traditional” interpretation of the law is that it grants the Secretary authority to provide relief in specific situations based on individual determinations – not mass cancellation of debt. Even Biden himself has previously indicated he does not believe Congress intended to give the executive the authority to enact a wide-scale cancelation of student loans, stating in February 2021, “I don’t think I have the authority to do it by signing with a pen.”
But even if Biden’s actions were legally sound, they would still be outrageously unfair and reckless. By every metric, student loan cancellation is an enormous wealth transfer from the working class to upper-middle class Americans. Only one in three American adults has a bachelor’s degree, and college graduates make nearly 85 percent more than those who have only a high school diploma. Furthermore, 69 to 73 percent of the debt relief will go toward borrowers in the top 60 percent of the income distribution. Ultimately, this policy will disproportionately benefit the wealthy, as lower-income taxpayers will be forced to effectively pay off loans they didn’t take out, either through higher taxes or more inflation.
No doubt many Democrats will see Biden’s actions as a political win going into November, but they may be in for a rude awakening. Giving handouts to their wealthy constituents at the expense of the working class may cause significant political blowback, especially if the action fails to turn out younger voters as Democrats are apparently hoping. The move may instead just be motivation for the majority of Americans without a college degree to turn out and vote Republican.
The policy could also cause trouble for Democrats by creating skepticism of the federal student-loan program as a whole. Seeing the student-loan cancelation for what it is—a huge giveaway to upper-income Americans—could lead to consensus among voters that continued federal loan support for higher education is not worth it. After all, the cancelation of $10,000 of debt per borrower could be the first step toward canceling $50,000 of debt per borrower (as Senate Majority Leader Chuck Schumer and Senator Elizabeth Warren have called for). And with the moral hazard created by Wednesday’s debt cancelation, taxpayers may fear even more students taking out riskier, irresponsible loans, which in turn could again be transferred to non-borrowers down the road.
Many borrowers who have dutifully paid off their loans over years or even decades will also likely feel disaffected as a result of the policy. Moreover, those planning to attend college in the coming years – and their families – will likely be asking where their $10,000 is.
By acting like a king, Biden is untethering executive power even further from constitutional restraints, while also putting congressional Democrats in a potentially precarious situation. “Suppose… your child at this time decided they did not want to go to college but you’re paying taxes to forgive someone else’s obligations. You may not be happy about that,” Speaker Nancy Pelosi acknowledged last year. If the Democrat Speaker of the House can figure that out, so can voters – and that could bode ill for any Democrat on the ballot this fall.
Tom Campbell is the pen name of a Washington, D.C.-based professional with more than a decade of policy and legislative experience at the state and federal levels of government.
Well when you add up the amount of taxpayer dollars involved in this unconstitutional action by Biden, when you look at both the student loans and Pell Grants covered by his edict, the total comes to $600 billion dollars. Most of the MSM is running around claiming it is only $300 billion dollars (intentionally under-estimating the true cost to try and minimize the backlash from the public ahead of the midterms), but that number doesn’t accurately represent the number of loans actually involved and the inclusion of the Pell Grant totals. The math is rather straightforward. That is $600 billion dollars that the American public will be on the hook to pay to colleges and universities to cover Biden’s transparent vote buying scheme.
Some networks have actually been playing Nancy Pelosi’s own past comments that the President doesn’t have the constitutional power to unilaterally “forgive” (transfer the responsibility to pay the outstanding loan balances from the students involved to the American taxpayers) without legislation from Congress. One of the very few times Pelosi has said something honest. However, challenging this unconstitutional action in the courts, as it certainly will be, will take time. A lot of time, which is what the Democrats are counting on. Certainly past the midterms if not well into 2023 or even 2024. In the meantime, we will of course be on the hook to pay for yet another unconstitutional action by this administration. The sheep will of course continue to bleat.
Another sad example of Biden buying his votes at the American taxpayer’s expense, it will FAIL…
To all of those whom paid for their college education by getting a job, you are SOL…
I agree with Paul below, this will run through the courts forevermore imo & all by design with the midterms just around the corner now, expect to see the madness of this half past dead make believe potus to continue on in never ending fashion as we head towards November…
Bill… :~)
Since they’re buying votes, how about reducing taxes, smaller government, eliminating useless bureaucracies, purge the corruption, stop printing money and close the borders and I’ll sell you mine.
THERE IS ONLY ONE SURE AND PERMANENT WAY TO STOP THESE CANCEROS, ANIT-AMERICAN, LYING, CHEATING libs AND IT’S NOT THRU ELECTIONS
DUE TO ELECTION FRAUD, AGAIN, THE libs WILL REMAIN IN POWER AND THERE IS ONLY ONE SURE AND PERMANENT WAY TO STOP THEM……….
Have colleges use endowments to defund loans IE Yale, Harvard etc
Or cut debt
Rebrand, remarket
What a moron, if they want to cancell debt then have the liberal nazi colleges cancell the debt (Harvard, Yale, Princeton, & many other Marxists colleges) Firing a few of their Adminstrators would more then pay for it, instead of continuing to destroy the middle class by piling on more debt to pay!!
Is the US House going to demand a Congressional Amendment be passed by 2/3rds or 38 of the 50 US States to give Biden power of the PURSE?
And what else evil, anti-American spell will he cast on US citizens? Is this loan forgiving legal? This is madness against those who have paid their college loans and their children’s college as I did and I have three and one with a masters.
This is bad, very bad. But why are the congressional leadership and the various caucuses not fighting this?
I know this is buying votes but the student loans were more of a disproportionate burden on low and middle income families. Something needed to be done previously. I think it is about time the scam was stopped. The colleges raised and raised some more on tuition making it an impossible burden to put on so many young people.
Here I sit at 69, paid in full my loans from undergrad and grad school, paid in full two of my children and working on the third. Saved for retirement so we could enjoy. Now I get to cut that short so I can pay for other slack a** parents who didn’t save, or help, or teach their children. Don’t think I won’t tell them if the topic comes up. This truly sucks.
Slap in the face to all of us who paid ours off.
This a-hole should be impeached. If it had
Been put to a vote it would never have
Passed. Can he forgive my mortgage and two car payments?
I don’t know how accurate this statement is . . . . . I found it in the comment section of an article dealing with student loan forgiveness on the Fox website.
Here is a direct Quote from House Speaker Nancy Pelosi (July 28 2021) ” President Joe Biden does not have the executive authority to issue “debt forgiveness,” arguing that such action would be illegal and that it has “to be an act of Congress.” “People think that the President of the United States has the power for debt forgiveness. He does not. He can postpone. He can delay. But he does not have that power. That has to be an act of Congress,”
Everyone who’s paid back loans should sue. If it’s ok for the young lazy pull my chain Pukes then make bidens Nazi regime pay EVERY US CITIZEN. Next biden will give free homes to illegals. Anything to crash a once Great Country.
Bulls**t!
These Students signed a binding Contract. Grow a couple of Balls and honor YOUR responsibility.
I worked to pay my college bills, got a couple of loans which I paid back, and got a LITTLE spending money from my folks. I concentrated on my degree; no booze or orgies. Now, I’m supposed to pay for people going to WOKE colleges, getting worthless degrees, and spending their “Loan” or own money on booze, drugs, cell phones, sneakers, etc.
Another example of Biden and the DIMMS supporting those who make horrible choices and passing the bill along to the WORKERS of the country.
MAGA!
This is shades of Evita Peron who bankrupted Argentina by giving free cars etc. to all citizens. This is totally UNFAIR to people who paid off their own college loans; and people who opted not to go to college because they believed they couldn’t afford to go. BIDEN needs to be REMOVED, along with his ilk… forcibly if necessary… and the sooner the better. He is sooooo out of touch… with raging inflation; an economic recession, an open border and all the rest of the garbage he has caused.
How can this senile President enact laws via executive order when Congress is the Legislative Branch? Hopefully at least one Republican will step forward to challenge this insanity. Is anyone in Washington concerned with our nations stability our is it all about lining their pockets?
My wife and I had to live from paycheck to paycheck and do without even the basics in order to help put our children through college for over a decade. We were thankful that we could help out, because there were so many parents and college kids who couldn’t keep up with the college costs no matter how they sacrificed. They had to take time off from college in order to make the money to go back to school. Now, we see Emperor Biden greatly overplaying his executive orders so that the Democrat Party will increase its ability to stay in power over the last 2 years of the Biden administration. The whole sordid affair stinks to high heaven.
Another unlawful act on the list for impeachment of Joe biden. Can’t happen soon enough.
Why do we need Congress any more?
If this works we could save a ton of money – just have one dictator make all the decisions. It worked for Hitler, Stalin, Mao, Castro etc.
Send Congress home but invite them back once a year to applaud all your decisions but make sure the Press and public toes the line- start building the camps just in case. Has the slippery slope just got more slippery?
It’s all about votes people and buying them! Free stuff and it’s a win, win for the “Old Ba****d either
way. Just don’t let him get away with it!!
,
Why were the loans made in the first place,were there no criteria to be met to qualify, he who lent the money to a looser must have known the risk
We worked very hard to go to college the ole fashioned way. Pay as you go. Then, our children both worked hard for great grades, both got some scholarships for college. We took virtually every nickle of our money to help. They worked campus jobs. In the end both graduated and went on to grad school earning their money thru campus jobs, stipends and other activities. We didn’t have the money, so both lived at home. We agreed to help with college, but no dorms. If they wanted that they were on their own to pay room and board. Now today we learn that we didn’t do it the right way. We were supposed to have been reckless, gotten in to debt, then Sugar Daddy Joe and team would come along and reward us for our poor behavior. As soon as I heard this I became, and am, furious. I sat down and wrote some checks this morning in support of competitive candidates, and called to do lit drops, yard signs, whatever, to get these clowns out of office.
Is this the only thing puppet biden can do is tax and spend other people’s earned money.
I paid my student loan and have a business degree. Kids today go to college to escape life and take nothing but liberal arts courses. Everyone who wants to go to college and needs a loan should be responsible for that debt. This will never end if marxist democrats continue. Beware of who you vote as the democrats have done nothing but spend your hard earned money
This is outrageous ! It is a power grab for votes. My wife and I paid her student loan for 10 years.
If you want a loan then pay for it !! Our taxes are being squandered by these filthy Socialist Democrats
The fraud puppet’s blatant BUYING VOTES (convenient timing, right before Nov. 8 elections)! This is more of the expletive pResident and Commie/Globalist traitor handlers (fraudulently in charge…pointing to you first, anti-America/American raciiiist Commie traitor Obama), giving our Constitution yet another single finger salute.
It’s Alz Joe, following orders, overstepped his authority by trampling Congress TO THE TUNE OF ALMOST ANOTHER $TRILLION WE DON’T HAVE, Watch it legally shut down…after Nov. 8.
Now watch colleges raise tuition by $10k as they know students have $10k “forgiveness”. The principle reason education costs continue to skyrocket is the easy access to cheap money. No one in Washington has any understanding of basic economics.
He does not really have the authority to do this. But what the heck, I will do whatever I feel like to get votes and keep my college boards and scammers happy.
Biden may be trying to cancel debt that is uncollectible.
However, this is the ultimate test of his authority. He does not have authority to cancel debt unless congress does nothing about it. This will then become “catch me if you can.” With no action, he gets away with it.
The use of the FBI for his political advantage is also a test.
The mid-term election is the only opportunity to curb his power.
I pray that this bites every Democrat in the back side!
“Executive order” has become the currect definition of diktat.
Oh, and please cancel my car loan, thank you, that is all.
These people need their heads whacked. Who’s for 15% inflation?
I am, once again, confused by this whole play. Who, exactly, will receive the “student loan forgiveness”? My daughter has over $10,000 in student loans that she has been paying for at least the past 5 years. She questioned and has not been offered any “hold” nor “forgiveness” on her loans. Of course she is not complaining about it because it IS her loan that she NEEDS to repay. But then she is a white Republican.
Which raises my next query: will these monies purported to pay standing student debt be only for the markedly liberal Democrats…with the rest of us assuming the bill?
It’s Illegal and the Supreme Court should call a Special Session and deal with it. on behalf of the American Taxpayer.
The MAGGOT Joe Biden is not a King, he is not above the Constitution, He and that moron Obama Think they can do as they Damn well please and need to be put on a tight leash and while they are on a leash, potty train them so they quit Cr*pping on the Constitution.
Nancy pelosi has already said that lyin Biden can’t do that. It takes an act of Congress. Sooo, why is Congress sitting on their lazy butts doing nothing about it. They should be up in arms. I guarantee, if President Trump had tried this, we’d still be hearing about it.
I started and finished my engineering curriculum, graduating in 2.5 years. 12 to 15 hour days/nights … and weekends attending class and studying. I paid back all my loans. No party time. $$ went for only basics (food, apt., utilities, phone). Little $$ was need for gas for the car as I didn’t have time to go anywhere. What about the person who only went to college for only 1.0 year and accumulated loan debt? Now, they had college fun for a year at no cost. Hundreds of thousands of dollars (maybe millions, I don’t know) spent by those in the industrial sector, e.g. electricians, plumbers, welders to educate themselves to become state licensed specialists should be livid, as it seems there’s no $10,000 rebate for them. Hey everyone, I’d like to believe this event is another positive for the Republicans. They’ve already rolled many democrat votes to republican votes with this raid on President Trump’s home. Now, hopefully, this $10,000 BS will make the roll become larger, longer and faster. I don’t preach the Bible, but many passages refer to having Faith. Please all, retain faith. And, by the way, I’m thinking about purchasing a new car and not making payments. If the dems lose excessively on Nov. 8th, then my auto loan may be paid off in an attempt to buy my vote for a Dem president. I’ll take the $$, but no way would it sway my vote to dem.
anyone with a brain knows the dumo is doing this to get votes – they either lie or cheat or promise things! i am not happy that i have to pay for others when i myself have no money. i’m sick of it – that’s all the dumos are known for – is spend spend spend
Call or write your Senators and Congressman and demand Congress assert their authority and demand the separation of powers that is supposed to define our Republic:
7 Ways Biden’s Student Loan Bailout Is Immoral
washingtonstand.com/commentary/7-ways-bidens-student-loan-bailout-is-immoral
“The president of the United States does not have the legal authority to cancel contract, and that is exactly what he is doing: He is voiding a repayment contract, and he does not have the ability to do that,” Rep. Bryon Donalds (R-Fla.) told “Washington Watch” guest host Joseph Backholm on Wednesday. Not so long ago, Speaker of the House Nancy Pelosi (D-Calif.) agreed. “People think that the president of the United States has the power for [student loan] debt forgiveness,” Pelosi told the media last July. “He does not have that power. That has to be an act of Congress.”
Biden’s plan also violates existing statutory law. When former Secretary of Education Betsy DeVos inquired whether she had the legal right to grant mass student loan cancellation, her department’s general counsel analyzed all relevant laws — including the HEROES Act — and replied that the executive branch does not have the “statutory authority to cancel, compromise, discharge, or forgive, on a blanket or mass basis, principal balances of student loans … and/or to materially modify the repayment amounts or terms thereof.” Any bill to write-off a debt is a spending bill which must originate with Congress. On the contrary, the federal government has a legal requirement to “try to collect a claim of the United States Government for money.” The opinion noted that Congress does not “hide elephants in mouseholes.” That is, Congress does not “impliedly delegate a policy decision of massive economic and political magnitude — as blanket or mass cancellation, compromise, discharge, or forgiveness of student loan principal balances … to an administrative agency.”
If Biden does not have the authority, can it be taken to court to overturn an executive order? People who graduated from college make a lot more than those of us who didn’t, yet we will be paying for THEIR school loans.
This Administration told us inflation is due to us having to much money. Problem solved!
Joe Biden is a total Moron! No President can authorize forgiveness of debt. That takes Legislation from the House of Representatives. Creepy Joe has violated the US Constitution again and again and must be impeached now! But once again the Republicans will not unite to impeach him. How can anyone vote for this fake and fraud!
A sickening, immoral move. Nothing short of extortion.
That is appropriating tax money. ONLY Congress can direct funding I any kind. The President can NOT direct funds, outside of funding all ready in a passed bill.
DEMONRATS ARE TOXIC TO THE U.S.A…..ERADICATE THEM!
I believe Congress needs to be involved with this. It seems JB is just buying votes. Many of us worked hard to pay off college debts ourselves and many of us did not even go to college. Nothing was given to us. So why then are we paying for others schooling. Our country is in debt! Perhaps if we did not give so much money away to foreign countries, we could help fund the kids in school. Overall, this is another corrupt scam by the Commie Democrats. Our country is in too much debt now. I would like to know who is picking up the tab for schooling, housing, medical etc. for all these illegals JB is letting into our country. Maybe he can sell a few of his houses and get some financial advice from the Pelosi’s to offset this mess. Perhaps these Commie Dems will forfeit their taxpayer paid retirements, after all many of them have not earned it. I am sick of this!
The DemonRats are insane. They are buying votes with OUR tax dollars.
The puppet Biden and his ‘merry band’ of budding communists will, unless stopped, continue to destroy everything this nation was built on and turn it into a third world poverty stricken country. All so they can rule on the rubble. Many believe this demented soul is being handled by a previous “president” who during his presidential bid opined “I’m going to transform America. This is but one of many of the dirty, treasonous acts these traitors have already done and will continue to do unless stopped…but unless it is to late, We The People have to do a lot more than comment about it…at this point unless there’s a miracle from Heaven, this nation will cease to exist as it was created to be.