By Ben Dutka|February 28, 2023
The Supreme Court has been a thorn in the Biden administration’s side for a while now — from overturning Roe v. Wade to ruling against the President’s attempt to ditch Title 42.
Now, they’re once again targeting one of the President’s biggest pet projects, and it’s bound to create a firestorm of backlash.
The high court is tackling Biden’s multi-billion-dollar debt relief plan, thanks to two major lawsuits.
When the administration announced a sweeping plan to cancel student debt for millions of citizens, many quickly criticized the move for a variety of reasons.
Biden’s idea would eliminate $10,000 in student loans per borrower, provided that borrower earns less than $125,000/year. It would also erase $20,000 per borrower who used Pell Grants.
The move was enacted via executive order last year, but the lawsuits quickly popped up challenging the legislation.
And it’s time for SCOTUS to step in (via The Daily Wire):
The Supreme Court will hear arguments on Tuesday regarding two lawsuits challenging a plan from the Biden administration to unilaterally cancel student debt for millions of individuals.
One of the lawsuits was filed by 6 Republican lawyers; the other was filed by the Job Creators Network Foundation.
The latter group’s President, Elaine Parker, told The daily Wire that student loans are only a “symptom of the underlying disease of out-of-control college tuition,” which is now twice the rate of inflation.
Biden’s loan forgiveness program would only worsen this problem by failing to hold colleges accountable and giving them a blank check to continue price gouging.
By blocking this student loan bailout process, the Supreme Court can set the stage for bipartisan action to effectively reform the higher ed cartel and reverse runaway college costs burdening so many.
The organization believes it has a legal leg to stand on, too: They say this executive order by Biden “violates the notice-and-comment processes mandated by the Administrative Procedure Act.”
The GOP attorneys further cited a recent SCOTUS ruling (West Virginia v. EPA) that said federal agencies can’t use “highly consequential power beyond what Congress could reasonably be understood to have granted.”
In the end, the Supreme Court could put a stranglehold on Biden’s controversial plan.
The national debt is already soaring and the student loan cancellation program would cost us another $400B (via the Congressional Budget Office). Then there’s the other problem that comes with handouts.
Basically, if you erase debt once, those who borrow will think it can happen again.
That would only increase borrowing and put a heavier expectation on the government to forgive and forget debt on a wide scale. That’s just enabling the entire country in the worst way possible.
Former Treasure Secretary and National Economic Council Director Lawrence Summers also warned:
Student loan debt relief is spending that raises demand and increases inflation.
It consumes resources that could be better used helping those who did not, for whatever reason, have the chance to attend college. It will also tend to be inflationary by raising tuitions.
As many financial experts will say, handouts and erasing voluntarily incurred debt is not the answer.
The Supreme Court isn’t examining the issue from the societal or psychological standpoint, but they have a chance to strike down Biden’s plan from a legal standpoint. And many hope it happens.
- The Supreme Court will hear two lawsuits that aim to block President Biden’s student debt cancellation program.
- Critics say the legislation will only worsen the problem by encouraging more borrowing and reliance on handouts.
- They also point out that the $400B price tag will contribute to the already sky-high deficit.
Source: The Daily Wire