Biden ’s Student‐​Debt Forgiveness Plan Is Illegal

Thomas A. BerryIn 2003, Congress enacted theHEROES Act ( “HEROES” stands for Higher Education Relief Opportunities for Students). As implied by its name and timing, the law was enacted as a reaction to the Iraq War. Several of thefloor statements from members of Congress reveal that a primary motivation for the Act was to ensure that military members could have their student loan payments deferred while serving their country.Now, the Biden administration is attempting to use the HEROES Act to achieve a policy goal that is far different, and far more sweeping, than anything the law has been used for in the past. In August of last year, the administrationannounced that after a nearly three ‐​year pause on federal student loan payments, certain borrowers meeting an income cutoff would receive $10,000 to $20,000 in debt forgiveness on their principal student loan balance. While the total cost to taxpayers from this program is uncertain, the Congressional Budget Office hasestimated it to be around $400 billion.To enact this massive debt ‐​forgiveness plan, the administration relied on a section of the HEROES Act that gives the Secretary of Education authority, in certain circumstances, to “waive or modify” provisions of law applicable to federal student loans. The Secretary may do so “as may be necessary to ensure that … recipients of student financial assistance” who are affected by war or national emergency “are not placed in...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs