Joe Biden is set to unveil a new strategy to forgive student loans for millions of Americans. This announcement comes amid growing discontent among younger voters and a noticeable dip in Democratic support in the critical battleground of Wisconsin. Despite the Supreme Court’s previous unequivocal rejection of Biden’s loan forgiveness plan, the administration is rehashing its same plan by leveraging the Higher Education Act in a novel way.
Biden announced the new proposal during a campaign stop in Madison, Wisconsin. It proposes to cancel up to $20,000 in interest for borrowers whose student loan payoff balances have increased because of unpaid principal and interest. White House officials claim it will extend relief to over 30 million borrowers. Previews of the plan show it includes specific relief provisions for those enrolled in income-driven repayment plans, public service workers, and anyone facing “financial hardship.”
Biden’s plan is not only a desperate attempt to secure votes ahead of the looming electoral battle against President Donald Trump but also raises significant legal and constitutional concerns. The insistence on acting without legal authority is a direct challenge to the authority of the Constitution and the Supreme Court.
“Biden announces new student debt relief plan for millions of borrowers…”
Yes, it’s vote buying with over a hundred billion tax dollars. And yes, it’s illegal, according to the Supreme Court. https://t.co/ARigPmEmtN
— David Asman (@DavidAsmanfox) April 8, 2024
With the national debt continuing to skyrocket under “Bidenomics,” Republicans warn that the cost of loan forgiveness will only further spark inflation and lessen the prospects for interest rate reductions in an economy struggling to produce the consumer goods Americans need. The plan’s broad eligibility criteria will also undoubtedly benefit many who are not in dire financial need, further sticking it to those who either paid their student loan debts previously or declined to go into debt.
While Joe Biden touts the initiative as a crucial step toward “educational equity” and financial relief for millions, the plan is an unsustainable, legally dubious scheme aimed at currying favor with disillusioned voters. Aggressive litigation from several states in the coming months could lead to a judicial remedy to the vote-buying strategy before Election Day.
Legal experts and policy analysts will scrutinize the administration’s reliance on the Higher Education Act to circumvent Congressional approval. If allowed to stand, the disregard for constitutional checks and balances would set a precedent for even more expansionist and illegal unilateral executive actions.
