Warren promises to use the Education Department to sidestep Congress and forgive student loans.
If a Democrat wins the 2020 presidential election, you can
be sure they have a bag chock full of ideas about free programs. One of the big
ticket items they continue to push is student loan debt forgiveness.
On the surface, loan forgiveness is a blatant attempt to
garner votes from specific voting blocs, in this instance college students.
For months, Democrat hopefuls have touted their plans to forgive
student loan debt. And up until the last few days, they believed that they
would need Congressional approval to institute this program.
It seems as if Elizabeth Warren has figured out a way around
Congress, meaning she wouldn’t have to deal with those pesky loan forgiveness
Her plan is to use executive action to sidestep legislators by
using “existing law”. And it uses the Education Department to accomplish it.
According to Michael Stratford at Politico writes that her plan:
Would require the Education Department to drastically expand its interpretation of the power it has to wipe out federal student loans under the Higher Education Act.
The Education Department has long had the power to “compromise” or waive student loan debt, but it has mostly done so only in limited cases to write off or settle the debts of defaulted borrowers who are unlikely to repay.
Just to refresh, Warren plans to waive up to $50,000 of
student debt for those who make under $100,000 and diminishing debt waiving for
those making more than $100,000 and less than $250,000.
Needless to say, the $640 billion dollar program (which is
probably a low estimate) takes money from hard working Americans, including
those who have paid of debt, and redistributes it to those should work to pay
off the loans themselves.
But hey, when there are votes up for grabs, darn the
torpedoes and full speed ahead.