The administration has canceled $127 billion in student debt with hopes to expand those efforts via regulation.
By Samantha Flom11/28/2023
The first of roughly 813,000 student loan borrowers will be notified via email on Nov. 28 that their federal loans were forgiven, the White House has announced.
The email, shared ahead of time with The Epoch Times, includes a message for borrowers from President Joe Biden congratulating them on their debt forgiveness and urging them to share their stories of “what this relief means” to them.
“For too long, the student loan program failed to live up to its commitments – and millions like you never got the relief you were owed because of errors and administrative failures,” the missive reads. “I vowed to fix that, and I’m proud that my Administration has delivered on that promise.”
More than 614,000 of the borrowers set to receive the email will have their remaining federal student loan debt entirely wiped out.
The White House first announced the mass debt cancelation—totaling more than $39 billion—in July, noting that hundreds of thousands of borrowers had been denied forgiveness they were entitled to due to “errors and administrative failures.”
Those errors, according to the administration, included the failure to give borrowers proper credit for decades of payments under their income-driven repayment plans and loan servicers’ wrongful placement of certain borrowers in forbearance.
Detractors of that plan, however, say that the executive branch does not possess the authority to make such sweeping changes via regulations.
During the public comment portion of the negotiating committee’s Nov. 6 meeting, Cato Institute Center for Educational Freedom Director Neal McCluskey made that very argument.
“All of this is occurring through a bureaucratic process that is grossly undemocratic and a violation of constitutional separation of powers,” he contended. “It is the Legislative Branch, not the Executive, that is charged with writing laws, including the major components of federal programs.”
Mr. McCluskey also expressed disappointment that the committee’s makeup offered no representation for most Americans who have never had federal student loan debt.
“People who attend college are poised to be major economic winners,” he noted. “They should pay the cost of investing in themselves, not taxpayers. They should also bear the risk of an overly expensive or poorly scrutinized investment—that incentivizes thoughtful, efficient education.”
Holding that mass debt cancelation would only incentivize institutions to further drive up the cost of tuition, he contended that the committee’s efforts would only end up hurting those they seek to help.
The committee is set to meet again on Dec. 11-12.
This is a scam to collect votes from young people without jobs after graduation.
Vietnamese American Conservative Alliance (VACA)
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