topic Student Loan Cancellation Debacle -What Now? in Credit in the News

Update on Student Loan Relief Challenges

SweetCreditObsession — Fri, 21 Oct 2022 17:07:28 GMT

https://www.reuters.com/markets/us/us-supreme-courts-barrett-declines-block-biden-student-loan-relief-2022-10-20/

Student Loan Cancellation Debacle -What Now?

CreditCharmer — Wed, 16 Nov 2022 16:52:46 GMT

Student debt forgiveness is on hold for now—here's why it's blocked and what could happen next

"After appearing to clear a number of other legal hurdles, President Joe Biden's student debt forgiveness plan has been blocked.

Last week, a federal district court in Texas issued a ruling calling the plan "unconstitutional," which the Department of Justice has already appealed on Biden's behalf. And on Monday, addressing a separate lawsuit, the 8th Circuit Court of Appeals continued an existing pause on the relief while it considers the plaintiff's arguments.

The bottom line for borrowers: You probably won't be seeing your debt balances reduced as soon as the president had said. The administration maintains its legal authority and says it's continuing to fight for borrowers, but many questions remain as to what comes next."

https://www.cnbc.com/2022/11/16/biden-student-debt-forgiveness-blocked-whats-next-for-borrowers.html

Re: Student Loan Cancellation Debacle -What Now?

LakeLife — Thu, 17 Nov 2022 15:10:23 GMT

“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.”

I fully agree with that statement, but it’s not mine. It’s from House Speaker Nancy Pelosi, spoken during her weekly news conference on July 28, 2021

Most of us in Washington have long understood that President Biden does not have the Constitutional authority to forgive student loan debt by executive order. The separation of powers doctrine makes that very clear: Congress appropriates the money using the ‘power of the purse,’ and the executive branch – notably, the president – implements and administers the money Congress approves. "