92% of student loan debt is publicly owned through the Department of Education. This department can - and periodically does - write off loans as bad debt for a variety of reasons. And the policies used to determine when the department writes of the loan are set by the department itself.
However, the funding for new loans is derived in large part from the repayment of old debt. So the DoEd could scratch it's trillion dollar balance off, but would then have this massive liability to the US Treasury with no way to pay it back (not unlike a bunch of the failed private banks during the 2008 crash). And, of course, no new loans would be forthcoming, forcing borrowers into the private lending market (where rates get into the double digits).
There are legalistic end runs Congress or the Treasury could do to avert this. But Dems blocked debt relief in 2009 and then again in 2017. The GOP is openly hostile to any kind of student debt relief, so they're no help. And the Treasury is just independent enough to tell DoEd to piss up a rope, while backchanneling aid to Silicon Valley Bank and other failed private lenders.
So, it's complicated. But also, it's only not possible because we choose to exclusively bail out the Tech/Auto/Finance/Real Estate sectors and leave Education high and dry.
The comment I replied to was claiming that under the recent SCOTUS decision he could just do it as an official act and no one can stop him. That is what is wrong.
I agree with you, that the Executive has the unilateral and plenary power to forgive and/or waive this debt.
Well he would not be liable to criminal prosecution, but that says nothing of whether the loans have to be forgiven upon his declaration.
The immunity just stops him from facing personal legal consequences and only after SCOTUS confirms any crimes were committed during an official act. How do they test for that? They haven't said and will make up reasons to help/hurt whoever they want on a case by case basis.
Are there laws Biden could break that would force loan forgiveness, and would the current supreme court side with Biden? Seems like no in both cases aside from more Seal Team Six arguments resulting in a new set of SCOTUS judges ruling on such orders. Biden ain't the guy to make that happen.
He could forgive it all as an "Official Act"
Republicans would fight it and SCOTUS won't let us have nice things.
Oh damn, well 'spose should never try to do anything unless the Republicans agree with it.
"6-3 decision; now students owe double the money directly to SCOTUS. we accept Paypal"
It would depend on lower courts to decide if it’s official or not
It would get appealed to SCOTUS regardless of any lower court decision
At least if he tried, he might win the election.
he litrally did try that which started this whole thing....
He didn't have a supreme court decision saying the president can do whatever they want as long as it's an official act then.
The president can simply begin killing SCOTUS judges until the court has a liberal majority.
But that opens the door to Republicans doing the same thing, which they would NEVER do otherwise (unless they felt like it).
So the Dems are powerless and the GOP has unlimited power.
Do that, have the new justices reverse the previous decision. Implement corrections to prevent such a thing from happening again. Problem solved.
No he couldn't.
92% of student loan debt is publicly owned through the Department of Education. This department can - and periodically does - write off loans as bad debt for a variety of reasons. And the policies used to determine when the department writes of the loan are set by the department itself.
However, the funding for new loans is derived in large part from the repayment of old debt. So the DoEd could scratch it's trillion dollar balance off, but would then have this massive liability to the US Treasury with no way to pay it back (not unlike a bunch of the failed private banks during the 2008 crash). And, of course, no new loans would be forthcoming, forcing borrowers into the private lending market (where rates get into the double digits).
There are legalistic end runs Congress or the Treasury could do to avert this. But Dems blocked debt relief in 2009 and then again in 2017. The GOP is openly hostile to any kind of student debt relief, so they're no help. And the Treasury is just independent enough to tell DoEd to piss up a rope, while backchanneling aid to Silicon Valley Bank and other failed private lenders.
So, it's complicated. But also, it's only not possible because we choose to exclusively bail out the Tech/Auto/Finance/Real Estate sectors and leave Education high and dry.
The comment I replied to was claiming that under the recent SCOTUS decision he could just do it as an official act and no one can stop him. That is what is wrong.
I agree with you, that the Executive has the unilateral and plenary power to forgive and/or waive this debt.
Well he would not be liable to criminal prosecution, but that says nothing of whether the loans have to be forgiven upon his declaration.
The immunity just stops him from facing personal legal consequences and only after SCOTUS confirms any crimes were committed during an official act. How do they test for that? They haven't said and will make up reasons to help/hurt whoever they want on a case by case basis.
Are there laws Biden could break that would force loan forgiveness, and would the current supreme court side with Biden? Seems like no in both cases aside from more Seal Team Six arguments resulting in a new set of SCOTUS judges ruling on such orders. Biden ain't the guy to make that happen.