Press Releases

President Obama initiated a drastic federal takeover of the student loan program. The result? Rising college costs, declining return on investment, and ballooning student loan debt costing taxpayers hundreds of billions of dollars. President Biden is doubling down on these failed policies and enacting flat-out illegal student loan bailouts that will further exacerbate problems for students and taxpayers.
 
In Case You Missed It, via WAMC Northeast Public Radio, former New York Congressman John J. Faso writes about the Obama-Biden administration‘s blame in the student debt crisis and how the Biden-Harris administration is illegally enacting a mass student loan bailout.

 
Biden Student Loan Cancellation Illegal
By John J. Faso, a former Member of Congress 
September 22, 2022
 
President Biden recently announced his plan to cancel student debt. While popular with some, the Biden plan does nothing to change the upward trajectory of higher education costs.
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President Obama promoted the enactment of a federal takeover of student lending as part of the legislation which created the Affordable Care Act in 2010. At that time, Obama proclaimed that by cutting out the “middleman”, taxpayers would save $68 billion. Banks would no longer underwrite student loans and the federal government would directly lend to students. 
 
Every one of Obama’s promises turned out to be untrue. The program didn’t save any money. Loan defaults increased. Colleges accelerated increases in tuitions and fees and student debt skyrocketed. Today’s student loan mess was caused largely by Obama’s failed program.
 
Biden’s plan is unwise for many reasons. First, it lets colleges and universities off the hook for students who never graduate or who graduate with degrees which don’t lead to a job. Second, it tells those who’ve repaid loans that they were suckers to do so. Third, the plan will create millions of new borrowers who in coming years will naturally expect their loans to be forgiven.
 
However, there is a more fundamental reason why Biden’s action is misguided: a president does not have the authority to waive debts owed to the federal government absent an express authorization from Congress. Despite his recent rhetoric about “defending democracy”, Biden ignores the question of his authority to unilaterally cancel student debt. 
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The Biden plan would unilaterally forgive $500 billion in debt owed to the government and some reputable analysts say the cost is closer to $1 trillion. …
 
Biden’s action is a violation of his constitutional oath to make sure the laws are “faithfully executed”. 
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 The next time Mr. Biden proclaims his fealty to the rule of law and to the defense of democracy, we should remember his actions and not his words.  
 
Read the full op-ed here.