President Biden has decided to forgive $10,000 of student loans for everyone with a federal loan. Well, that is, as long as you make less than $125,000 a year.
It’s not fair. Those who worked hard to get their loans paid off get nothing. Meanwhile, the “lazy,” as Ted Cruz refers to them, get a government handout.
The Texas senator has been vocal about the loan forgiveness program – and he’s clearly not in favor of it.
Cruz has even gone as far as calling the new policy something that will benefit the “slacker barista” who took out a student loan so that they could obtain a “useless degree.”
He’s not alone in his criticism. Many Republicans have warned that it’s going to hurt the economy and cost taxpayers too much money. And let’s not forget that it’s an unfair program since it only helps those earning a certain amount of money.
There are also many wondering if Biden’s newest policy is legal or not. Does Biden actually have the authority to cancel student loan debt in such a broad manner?
With some Americans threatening legal action, it brings up the question of whether they have a case or not.
Cruz is a lawyer first and foremost. And as frustrated as he is with the Biden administration to cancel student loans, he admitted during his Sunday podcast that taking legal action may not be that easy.
“The difficulty here is finding a plaintiff who the courts will conclude has standing. That may prove a real challenge.”
Quite a few Republican state attorneys general seem to be up to the task. They are working with conservative advocacy groups to determine what legal options they have to fight for forgiveness.
As of right now, the Biden administration claims they have the power to mass-forgive student loans due to the authority given to them under the HEROES Act of 2003. It allows the education secretary to waive or modify student loan balances that are connected to a national emergency.
COVID-19 is that national emergency – but is it still a national emergency considering that there are fewer cases – and the cases that do emerge are rarely life-threatening?
Although the HEROES Act may provide some authority, those who are threatening legal action say that it is an overreach and that Congress should be providing approval.
Overreach or not, is Biden’s decision to forgive $10,000 for those who earn less than $125,000 actually hurting anyone? Abby Shafroth is a state attorney with eh National Consumer Law Center. During an interview with Business Insider, she explained that it is “very unlikely that any of these groups can prove they’ve suffered any legally cognizable injury that would provide them standing to challenge those actions.”
And that’s where Ted Cruz is getting frustrated. He sees that the Biden administration has gone around Congress in order to make campaign promises come true. He knows that Biden is doing this to strengthen the Democrats’ chances in the midterms. And he recognizes that what they have done is an overreach. Yet, he can’t do anything about it, legally speaking.
Perhaps at this point, we need to work to end the national emergency that was created by COVID. Otherwise, there’s no telling how many other “relief” acts will be passed by Biden – all because of a loophole that should have been closed months ago.