Is the Student Loan giveaway legal? (college, pay, employment, mechanics)
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OK forget about whether certain borrowers (including my two adult sons) "deserve" a handout from the rest of us beyond the several years of zero-interest forbearance.
Is the giveaway even going to happen? Within the past year the Speaker of the House said that POTUS cannot simply wish away debt with an Executive Order. Given that it looks like the Speaker is right, what is Congress doing about it? Anything?
Edit: trying not to be political by keeping names out of it.
P.S. Can POTUS simply extend forbearance until the year 2099 or beyond, and dare a successor to rescind it?
Not at all. There will be lawsuits left and right. People who make over $125K, loan officers, people who say it wasn’t enough, people who already paid off their loans, etc. even Pelosi admitted it wasn’t legal last year:
Quote:
“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,” Pelosi said.
FYI -- I started this thread rather than tack onto the existing mega-thread on the $10k forgiveness, because that thread has a different focus.
My intention here is to discuss the mechanics of how the forgiveness could be done, if it can be done at all.
Personally I believe we would be better served by perhaps expanding the existing Public Service Loan Forgiveness program, and not extending blanket handouts to people (again, like my own adult sons) who don't need any help.
On my son's student loan servicing website it clearly states that "Interest rates on federal student loans are set by Congress."
But two POTI in a row have declared 0.00% interest on a short-term basis. Can that short term basis be extended "virtually forever", and therefore effect a full forgiveness?
On my son's student loan servicing website it clearly states that "Interest rates on federal student loans are set by Congress."
But two POTI in a row have declared 0.00% interest on a short-term basis. Can that short term basis be extended "virtually forever", and therefore effect a full forgiveness?
If they want to do the right thing w/o all the politics, declare college loans 0.00% or close to it for everyone that has one. Do NOT forgive the loans. You borrowed it, pay it back. Everyone, except the banks, their lobbyists, and the politicians on their payola would be good with this.
I have no problem with loan forgiveness but the only problem is timing and selection. It's no longer a democratic process if it's targeted.
This isn't about whether it's fair or not. I'm hoping to determine if it's legal to do the forgiveness via Executive Order or via Administrative action at the Dept. of Education.
Here is an interesting article, where the author thinks the forgiveness will not be successfully carried out by the Administration. It seems like a pretty complex issue, and no doubt there will be legal experts who agree and disagree with either side of the argument.
If they want to do the right thing w/o all the politics, declare college loans 0.00% or close to it for everyone that has one. Do NOT forgive the loans. You borrowed it, pay it back. Everyone, except the banks, their lobbyists, and the politicians on their payola would be good with this.
There aren't any banks involved. At least not in the traditional sense. You and I are the banks because the student loans were all issued by the Federal Government.
Actually the "permanent" 0.00% idea is something I floated earlier, but in reading further it may not be so simple. The POTUS is supposed to be acting under a "war or national emergency" scenario, and the pandemic is all but over in any real sense. We have record low unemployment which means people should be able to get jobs and pay back loans.
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