in ,

Obama Official Not On Student Loan Debt Train

Charlie Rose, the former Education Department general counsel under the Obama administration, is “doubtful” President Joe Biden has the authority to forgive student loans through executive action, The Wall Street Journal reported.

“If the issue is litigated, the more persuasive analyses tend to support the conclusion that the Executive Branch likely does not have the unilateral authority to engage in mass student debt cancellation,” Rose detailed in a confidential May 2021 memo for his law firm, Hogan Marren Babbo & Rose, Ltd, the WSJ reported.

If student loan forgiveness isn’t based on individual need and done through regulatory procedures, the Biden administration could risk having its executive action overturned in court, because loan-servicing companies and investors with student loan backed securities could sue over the action, Rose said.

The Biden administration has signaled it is taking action to forgive $10,000 per borrower in student loan debt, which would be done through executive action. Other democrats, such as Senate Majority Leader Chuck Schumer, have signaled they would like to forgive up to $50,000 in student debt.

Biden himself has said he is unsure he has the authority to take such action through executive order.

“I don’t think I have the authority to do it by signing with a pen,” Biden said during a CNN town hall last year.

“But I do think that, in this moment of economic pain and strain, that we should be eliminating interest on the debts that are accumulated, number one,” he added. “And number two, I’m prepared to write off a $10,000 debt, but not 50 [thousand].”

Under the 1965 Higher Education Act, the Education Secretary can “enforce, pay, compromise, waive, or release” an unspecified amount of student loan debt, which advocates say gives the executive branch flexibility, the WSJ reported.

But Rose argues “it is fair to discern Congress has inferred that the [Education] Department should not decide the question of mass forgiveness of performing loans,” according to his memo, the WSJ reported. Instead, he suggested rule changes through the federal regulatory process, which he said would provide a stronger legal basis.

Since the start of the pandemic, payment and interest on federal student loans has been paused, but is expected to resume on Aug. 31.

The DOE did not comment on the legality of the executive order but said the Biden administration has been hard at work delivering meaningful relief to student loan borrowers” to ensure “better implementation of student loan programs.”

“While we continue to deliver immediate relief for those struggling with debt, our overall goal is long-lasting change that reduces indebtedness and makes college more affordable, including through rulemaking,” the statement added. “We are also committed to preventing a future debt crisis by holding colleges and universities accountable for leaving students with mountains of debt and without good jobs. The Department’s review of broad based debt cancellation remains ongoing.”

The White House did not respond to the DCNF’s request for comment.

Original Article:


Leave a Reply
  1. Why should we as taxpayers who have paid our student loans, paid for our college or childrens’ college through working and saving, or not been able to attend college pay for the college debt of graduates who simply don’t want to now pay. In addition some 65% is due to graduate degrees.
    Or I assume we can bill and have paid those costs that we took on and have the govt pay us back. Or I cannot make my house payment, will the govt pay that?
    The Dems need to stop trying to buy votes on our backs.

  2. It took me 10 years to get through OSU….You know why? I got some of the money from the GI bill as thanks for not getting killed the ’68 TET offensive. The rest I paid myself. No friggin student loans. Just my own sweat and blood. – LITERALLY TOO! Real Sweat and Real Blood,,,,and a little meat off my ass too.

    So what do the snowflakes expect?. The banks to just eat the loss? If that is not distribution of wealth fitting of any commie dictator I eat my Vietnam Combat Ribbon. ,,,,, and guess what? – If these kiddies really need to go to collage for free let them enlist for 3 years. – The GO bill is better then ever,,,,and you will come out with a salable skill or at the very least a work ethic. ,,,, But you do have to get up in the morning and do what you are told and can’t run around with a phone on one hand and a bottle of water in the other every waking moment.

    Student loans were put in place so you could get a degree or other skill that makes you employable and then GET A JOB and pay it off, not to get be able to party and take dope for 5 years on somebody else’s dime.

    NO STUDENT LOAN FORGIVENESS…..Zero, Zip, None. and No bankruptcy either. Go to work and pay it off or go to debtors prison like they do to deadbeat dads. . Make an example of these freeloaders.

  3. The Government should not be in the Business of Loaning Money Period. That is what Banks and Money Loaning Business are FOR. Will he pay back those whose Parents scrimped to put their children through School . How about those who WORKED and went to night school over a longer period. Typical POLITICIANS being Helpful with Other Peoples Money, the TAX PAYER.

Leave a Reply

Your email address will not be published.

Will Schumer Help Elect GOP Senators?

DeSantis Banned From NY Holocaust Memorial