By ALG Staff
The U.S. Supreme Court is currently considering the fate of President Joe Biden’s executive order to forgive up to $20,000 in student loans for some borrowers in a case that is widely viewed as a test of Executive branch versus Congress’ legislative powers.
Rick Manning, president of Americans for Limited Government called the Biden student loan forgiveness plan, “An unconstitutional overreach that is fundamentally unfair as it favors those who took on debt to go to college over those who took on debt to start a business or chose to limit their education to what they could reasonably afford.
“What’s more, in the wake of the West Virginia v. EPA decision which limits the executive branch’s ability to expand significantly beyond the plain language of the law passed by Congress, it would contradict that important limitation on the administrative state for the Court to find in favor of the Biden administration.”
It Sets a Dangerous Precedent
One of the main reasons why the Supreme Court should reject Biden’s executive order is that it sets a dangerous precedent. If the president can simply forgive billions of dollars in student loan debt with the stroke of a pen, what’s to stop future presidents from doing the same thing for other types of debt? This could lead to a situation where people feel entitled to have their debts forgiven by the government, which would make elections little more than lotteries with the lucky winners getting paid off in debt relief.
It Punishes Responsible Borrowers
Another problem with Biden’s executive order is that it punishes responsible borrowers who have already paid off their student loans or who are currently making payments on them. These borrowers made sacrifices and worked hard to pay off their debts, and they shouldn’t be penalized because others were unable or unwilling to do so.
It Doesn’t Address the Root Cause of Student Loan Debt
Forgiving student loan debt may provide temporary relief for some borrowers, but it doesn’t address the root cause of student loan debt in America. The cost of higher education has skyrocketed in recent years, and many students are forced to take out large loans just to pay for tuition and living expenses. Until we address this underlying issue, forgiving student loan debt will only be a band-aid solution.
It Could Hurt Taxpayers
Forgiving billions of dollars in student loan debt would come at a cost – namely, taxpayers would foot the bill. This means that people who never went to college or who paid off their own student loans would be subsidizing those who didn’t. While it’s true that forgiving student loan debt could stimulate economic growth by freeing up money for other purchases, it’s not clear whether this would outweigh the costs.
For these reasons, the Supreme Court should reject President Joe Biden’s executive order to forgive $20,000 in student loans. The decision could set a dangerous precedent and punish responsible borrowers while failing to address the root cause of student loan debt. Moreover, it would come at a significant cost to taxpayers without offering targeted relief for struggling borrowers.
The bottom line is that the Supreme Court should follow the Constitution and reject the Biden plan. If the President wants to address the failed federal government run student loan system, he should go to Congress with a plan to overhaul the entire system and allow those struggling with student loan repayments bankruptcy as an option, increase accountability to colleges for defaults by their former students and most importantly take the federal government out of the business of overseeing a massive banking operation that it is ill-equipped to run.
This post, The U.S. Supreme Court Should Reject President Joe Biden’s Executive Order to Forgive $20,000 in Student Loans, was originally published on The Daily Torch and is republished here with permission. Please support their efforts.