Many experts agree that Joe Biden does not have the authority to hand out student loan forgiveness. Even Nancy Pelosi said as much last year (but now is mysteriously quiet as she fears losing the House). Numerous lawsuits have been filed against Biden’s last pathetic attempt at buying the midterm elections. This scheme to “forgive” $500 billion in student loans will put yet another burden on working Americans.
But it doesn’t even seem as if Biden is willing to make good on his promise. As the reality of how idiotic this program set in, the administration is realizing they don’t have the money to cover millions of student loans. On top of that, some of these loans were made before 2010–which means Biden would be shelling cash out to private banks (and big left-wing no-no).
So now, he’s making some cuts.
The Biden administration quietly changed the fine print of it student loan debt forgiveness plan Thursday, cutting hundreds of thousands of borrowers out of the sweeping program.
The change to the Department of Education website, made without announcement amid legal challenges, leaves out Federal Family Education Loans, which included the once-popular Perkins loans. Those loans were issued by private banks but guaranteed by the government under a program that the Obama administration ended in 2010. The site previously advised those borrowers to consolidate the loans into the federal Direct Loan program in order to be eligible for up to $20,000 of relief…
More than 4 million borrowers still have commercially-held FFEL loans, but officials said only about 800,000 are expected to be affected. [Source: Daily Wire]
Private banks stopped giving out student loans during the Obama administration. All loans made to students since then were paid for by the federal government. It would be an easy thing, then, for Biden to just wave his hand and “forgive” those loans (which means taxpayers will never get their money back).
But loans made before 2010 were given out by banks backed by the federal government. Which means, if Biden forgives those loans, he’ll have to pay tax dollars to private banks. A bit of a sticky situation, to say the least.
How are all his far-left socialist supporters going to like the fact that Biden is handing out money to big, “evil” banks?
So, Biden has decided to cut these loans out–meaning as many as 4 million Americans will not get their loans forgiven.
The Department of Education hastily urged these borrowers to consolidate their loans into the federal Direct Loan program. But the deadline was September 29th–a date that has come and gone.
I’m sure more than a few Americans did not know they were supposed to do that–so they are out of luck.
Biden’s scheme was illegal from the start, which is why so many people are suing him. But now, he can’t even make good on his word.
Not much of a president, huh?
Author: Bo Dogan