The Job Creator’s Network, a small business advocacy organization, is looking into potential legal challenges to block President Joe Biden’s (D) student loan bailout of up to $10,000 for college graduates making under $125,000 a year.
“This move is fundamentally unfair to the tens of millions of hardworking Americans who never went to college and are now forced to shoulder loan forgiveness for the consultant class,” stated President and CEO Alfredo Ortiz on Wednesday, per Just The News.
“It’s also unfair to those who have scrimped and saved to repay their student loans,” he explained, adding, “They already paid back their student debt, and now they will be forced to pay back the growing national debt as a result of this bailout.”
“Forgiving debt incentivizes colleges to continue raising costs and borrowers to continue not paying back loans,” he continued. “Everyday taxpayers are stuck with the tab.”
“This executive overreach transfers taxpayer dollars from hardworking ordinary Americans and small businesses to disproportionately higher earners with college degrees,” he continued, according to the Associated Press. “It does nothing to address the underlying issue of outrageous college costs. Indeed, it rewards colleges for making education unaffordable and entrenches the failing status quo.”
The Biden Administration has attempted to cancel student debt via the 2003 HEROES Act which was originally used to aid survivors and their families with loans following 9/11.
The Justice Department, however, issued a legal explanation of the use of the bill claiming that the coronavirus pandemic, which is all but over, gives them “sweeping authority…when significant actions with potentially far-reaching consequences are often required.”
Further reinforcing the illegality of the move, in the closing days of the Trump Administration, the Department of Education found that there was no authority to cancel debt on a broad basis, per the Associated Press.
Even Speaker of the House Nancy Pelosi last year said that the president doesn’t possess the authority to cancel student debt: “People think that the President of the United States has the power for debt forgiveness. He does not. He can postpone. He can delay. But he does not have that power. That has to be an act of Congress.”
The legal foundation under which the administration has canceled student debt is shaky at best. If the Job Creator’s Network successfully gains a claim to sue the federal government over this order, it would likely head to the Supreme Court and be overturned due to Biden overstepping his executive authority. In such a case, Democrats would once again be outraged, and calls for packing the court will likely come back. If overturned, however, Americans who paid their way through college or never attended would breathe a sigh of relief.
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