Two recent federal judges have delivered a setback to Biden’s ongoing attempts to cancel massive student loan debt. I will elaborate on that later.
The U.S. Supreme Court declared last year that Biden’s massive attempt to unilaterally erase billions of dollars’ worth of student debt was unconstitutional. Instead of taking the seriousness of this criticism into account, Biden set out to accomplish the same goal right away, albeit in somewhat different ways.
Imagine the fury that would ensue if Trump attempted a similar action. The White House voiced its opinion on the same day that the Supreme Court rejected Biden’s initial loan cancelation proposal.
“No President has fought harder for student debt relief than President Biden, and he’s not done yet,” the statement read. “President Biden and Vice President (Kamala) Harris will not let Republican elected officials succeed in denying hardworking Americans the relief they need.”
The so-called “forgiven” debt does not vanish; instead, it is passed on to every taxpayer. This includes hardworking Americans who have already paid off their debts or consciously avoided incurring unmanageable debt. They are now being asked to bear the financial burden regardless.
Biden will find it more difficult to defend these most recent decisions, even if he and his administration have portrayed the attempts to block his student loan cancellation as the work of a conservative high court and a group of “Republicans.”
In a ruling last Monday, two federal judges in Kansas and Missouri barred the Biden administration from extending the president’s extensive income-based repayment plan, known as “SAVE,” which either completely or significantly reduces monthly payments and expedites loan cancellation.
The new plan is expected to cost $475 billion over a ten-year period, which is significantly higher than Biden’s originally proposed plan, which was overturned.
These aren’t judges for Trump. As vice president, Biden worked under previous President Barack Obama, who appointed U.S. District Judges Daniel Crabtree and John Ross.
According to Crabtree, the Higher Education Act of 1965 prohibits the “unprecedented and dramatic expansion” of repayment programs based on income.
In a similar vein, Ross declared that the promulgation of a loan forgiveness clause as part of the SAVE program by Biden’s Education Department “overstepped its authority.”
Even though Biden spent the majority of his career in the legislative branch, he can’t seem to comprehend that such enormous spending must go via Congress.
“Today’s rulings won’t stop our administration from using every tool available to give students and borrowers the relief they need,” said White House press secretary Karine Jean-Pierre last week.
Biden’s lavish scheme to purchase votes is not only unlawful. Additionally, it seriously damages our nation’s economy. That “forgiven” debt is still incurred by each and every taxpayer rather than simply going away, and that precisely is the issue.
A Committee for a Responsible Federal Budget review of the most recent baseline report from the Congressional Budget Office indicates that “spending this year will be the largest it’s ever been outside a crisis – far exceeding pre-pandemic levels.”
The reason why is easy to understand. Approximately half of the increase in spending is attributable to interest payments on our rapidly growing national debt as well as higher interest rates brought on by inflation.
According to CBO projections, assuming taxes and expenditure stay the same, the national debt would surpass $50 trillion in ten years and the deficit will hit $1.9 trillion this fiscal year.