Bad news: As we noted the other day, the real price tag of President Joe Biden’s student-loan-forgiveness plan turns out to be close to $1 trillion. Good news: It’s eminently stoppable.
Biden’s legal justification for the initial giveaway of up to $20,000 a head is beyond dubious. He’s relying on a 2003 law passed to allow loan relief for military personnel in the wake of 9/11 that also included added debt-forgiveness powers in case of a “national emergency” — and claiming that COVID qualifies as such an emergency.
But that law also requires beneficiaries to be “in a worse position financially in relation to that financial assistance” because of the emergency in question — and that’s plainly not so here: The unemployment rate for college grads, for example, is under 2%.
Plus, few of the indebted are in a worse position thanks to COVID because Biden keeps extending the “holiday” on student-loan payments (also citing the pandemic, even though it’s over.)
In short, his power grab won’t pass muster with the Supreme Court, which already shot down his eviction-moratorium and vaccine-mandate “emergency” orders. The only real questions are: 1) How long will it take to get this order nixed? and 2) How much taxpayer money will already be out the door when it happens?
Then there’s Biden’s larger, even more costly plan to rewrite the “income-driven repayment” rules so that most debtors can pay next to nothing before having the taxpayers eat the rest. Happily, this is so far only a proposal — which clearly needs congressional approval.
Bottom line: Your best bet for completely stopping Joe’s giveaway is to vote against every Democrat running for Congress this November.