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Rachel Armstrong
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In my previous article, titled “Biden Forgives Student Loans”, I began explaining the basic outline of the Student Loan forgiveness that President Biden mapped out on August 24, 2022. This plan may sound fantastic to some, but there will be a long road of legal battles and complications for this plan to take effect. The President’s administration based this “relief” on the HEROS Act of 2003, which stands for “Higher Education Relief Opportunities for Students”. This allows the Secretary of Education to have the ability to change policy if a national emergency causes student borrowers to be placed in a worse position financially. Some argue that he incorrectly used this act, because it was created to help service members and their families deal with debt accrued in fighting for this country, not for Americans who willingly took on the debt of college. However, the Office of Legal Counsel concluded that COVID-19 was a perfect fit to be classified as a “national emergency.” Although the president introduced this plan, he was never meant to have the power to do that. After all, The Constitution states that congress has the power of the purse. There is always a chance that a case will rise to the Supreme Court and they will overturn the order. The Supreme Court has repeatedly ruled that Biden has overstepped his power, so the odds are that it would say the same about this. Yet, if he gets this done before a case gets through, then it is a done deal. If this happens, potentially $1 trillion owed from loans will be transferred into other things, like taxes, which will affect inflation. This could be a positive, life-changing act for some– but nothing is ever free. Someone will have to pay for it.
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