Joe Biden's inflationary $300 billion bailout for the college-educated is being rammed through by executive fiat under a post-September 11th law that allows for debt cancelation "in connection with a war, other military operation or national emergency."
How's he doing it?— Steven Portnoy (@stevenportnoy) August 24, 2022
Biden is employing a post-9/11 law that allows for debt cancelation "in connection with a war or other military operation or national emergency."
Which emergency? "[T]he present COVID-19 pandemic," per a Dept of Ed memo issued yesterday.
Here's the memo:— Steven Portnoy (@stevenportnoy) August 24, 2022
Biden’s student loan plan will cause more inflation.— Thomas Massie (@RepThomasMassie) August 24, 2022
Wiping hundreds of billions of dollars off the government balance sheet is like injecting hundreds of billions of newly printed dollars into the money supply.
Inflation impacts retirees & lower + middle income families most.
The Department of Education's Office of the General Counsel writes (via Twitchy:
The HEROES Act, first enacted in the wake of the September 11 attacks, provides the Secretary broad authority to grant relief from student loan requirements during specific periods (a war, other military operation, or national emergency, such as the present COVID-19 pandemic) and for specific purposes (including to address the financial harms of such a war, other military operation, or emergency). The Secretary of Education has used this authority, under both this and every prior administration since the Act’s passage, to provide relief to borrowers in connection with a war, other military operation, or national emergency, including the ongoing moratorium on student loan payments and interest.
Specifically, the HEROES Act authorizes the Secretary to “waive or modify any statutory or regulatory provision applicable to the student financial assistance programs” if the Secretary “deems” such waivers or modifications “necessary to ensure” at least one of several enumerated purposes, including that borrowers are “not placed in a worse position financially” because of a national emergency. 20 U.S.C. § 1098bb(a)(1), (2)(A).
In present circumstances, this authority could be used to effectuate a program of categorical debt cancellation directed at addressing the financial harms caused by the COVID-19 pandemic. The Secretary could waive or modify statutory and regulatory provisions to effectuate a certain amount of cancellation for borrowers who have been financially harmed because of the COVID19 pandemic. The Secretary’s determinations regarding the amount of relief, and the categories of borrowers for whom relief is necessary, should be informed by evidence regarding the financial harms that borrowers have experienced, or will likely experience, because of the COVID-19 pandemic. But the Secretary’s authority can be exercised categorically to address the situation at hand; it does not need to be exercised “on a case-by-case basis.” Id. § 1098bb(b)(3). That is, he is not required to determine or show that any individual borrower is entitled to a specific amount of relief, and he instead may provide relief on a categorical basis as necessary to address the financial harms of the pandemic.
It's a national emergency that college-educated, upper class people -- who we've all been told are going to make an addition $1.2 million over their lifetimes versus folks with just a high school degree -- have to pay back the debts they borrowed.
Those who skipped college and went straight to work and those with only high school degrees who couldn't afford to go to college will have to pay their managerial elite overlords' loans off. It's not enough to be lectured endlessly by these cretins about how deplorable, racist and evil we are for not sharing their woke values, we must also pay off their debts.
When the Republicans were in power, they gave trillions in tax cuts to the super rich and megacorporations (who used all their extra money to get Trump out of office) and funneled billions of dollars to minority voters to try and buy their votes (it didn't work) but when Democrats are in power they extract money from middle and lower-class GOP workers to give to college-educated managerial elite Democrats.
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