Despite a federal judge in Texas ruling that Joe Biden’s student loan forgiveness plan was unconstitutional earlier this year, Biden and his administration are still pushing to have the plan passed.
Not only has Biden not had the support of the court system, but even his own party has turned its back on the scheme. In his ruling, the judge even quoted House Speaker, Nancy Pelosi (D-CA) who said Biden “does not” have “the power of debt forgiveness” and must achieve any loan forgiveness through an act of Congress.
In a last-ditch effort, Biden, and the few Democrats who still support the measure, are using fear as a means to convince others to pass it, saying that there will be a “historically large increase” in student loan defaults if the debt forgiveness plan isn’t passed.
It’s interesting that a president who has done nothing to stop soaring inflation and, if anything, contributed to inflation, is now making threats of increased defaults on loans if he doesn’t get a measure the country can’t afford passed.
In a new court filing, a top official with the Department of Education said, “Unless the [Education] Department is allowed to provide debt relief, we anticipate there could be an historically large increase in the amount of federal student loan delinquency and defaults as a result of the COVID-19 pandemic.”
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While the Biden administration continues its court battle to have the loan forgiveness plan passed, 6 Republican states have argued in a separate lawsuit that the student loan forgiveness plan would threaten future tax revenues and bypass congressional authority if passed.
Not only is there the question of the legality and constitutionality of the debt relief plan, but also how the country could afford it with soaring inflation, astronomical debt, and billions of dollars being handed over to Ukraine. There is a right time to attempt to pass legislation like this and it’s not now.