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86% of recent student loan borrowers, defined here as those who have taken out a loan since Biden was elected in November 2020, say Biden's campaign pledge to address student debt played a role in their decision to take out loans. Additionally, 21% of borrowers say they would have been unlikely (16%) or very unlikely (5%) to take on the same amount of debt had Biden not campaigned on student loan forgiveness.Some students likely cannot afford to go to college without their loans being bailed out, according to the survey results.
President Joe Biden does not have the legal authority to cancel student loans by executive order, according to a report prepared by the Texas Public Policy Foundation.
The conservative think tank released a report recently that details different issues with loan cancelation through executive order.
First, the assumption of the loans by the federal government would represent a spending of money that has not been authorized by Congress, the foundation reported.
Second, the Higher Education Act of 1965 does not give broad authority for the Secretary of Education to modify or waive all student loans.
Student loan amnesty activists often refer to a section in the law that gave the Education Secretary the power to "modify, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption."
This section only refers to specific programs, such as Public Service Loan Forgiveness, created through that Act. The foundation wrote:"No one else in the U.S. government can unilaterally spend $1.6 trillion dollars at their sole discretion [S]o it would be strange if the secretary of education was the sole exception to that rule based on an obscure provision that laid undiscovered for decades."Debt transfer proponents would still face problems"[even if] there is a loophole that allows universal forgiveness without congressional approval, [because] it would not apply to the vast majority of current student loans."That is because "only $230 billion" of the $1.6 trillion in outstanding student loan debt falls under the 1965 education law.
Comment: Not only did Halifax Bank go woke, it obnoxiously did so. Going broke is the inevitable conclusion. The pronoun brigade who applaud this nonsense likely don't constitute a viable customer base.