patrick.net

The Biden administration quietly announced a change in its student debt forgiveness program on Thursday that could exclude up to 4 million borrowers with loans owned or backed by private companies.

The u-turn by the federal government comes after the first legal challenges were filed to the policy and following criticism of the huge costs to taxpayers. Critics also claimed the plan is an illegal use of President Joe Biden's executive power.

The Education Department announced that privately-held loans won't qualify for the relief plan, which the Congressional Budget Office said earlier this week could cost $400billion over a decade.

The scale back on Perkins and Federal Family Education Loans - which are bank loans backed by federal guarantees - is over concerns the companies could challenge the Biden administration in court, Politico reported.

Biden Student Debt Bailout Won't Require 'Supporting Documents' to Prove Eligibility

https://townhall.com/tipsheet/spencerbrown/2022/10/11/bidens-student-debt-bailout-plan-ripe-for-fraud-n2614371

Biden Student Debt Bailout Won't Require 'Supporting Documents' to Prove Eligibility

Patrick says

https://townhall.com/tipsheet/spencerbrown/2022/10/11/bidens-student-debt-bailout-plan-ripe-for-fraud-n2614371

Biden Student Debt Bailout Won't Require 'Supporting Documents' to Prove Eligibility

So it's free money for anyone who asks for it!

Patrick says

https://townhall.com/tipsheet/spencerbrown/2022/10/11/bidens-student-debt-bailout-plan-ripe-for-fraud-n2614371

Biden Student Debt Bailout Won't Require 'Supporting Documents' to Prove Eligibility

So it's free money for anyone who asks for it!

So it's free money for anyone who asks for it!

zzyzzx says

So it's free money for anyone who asks for it!

This feels a lot like the Wuhan Virus "relief" money.

zzyzzx says

So it's free money for anyone who asks for it!

This feels a lot like the Wuhan Virus "relief" money.

A federal court in Texas held that when the Biden administration established its $400 billion student-loan “forgiveness” program, it unconstitutionally exercised “legislative powers” that the U.S. Constitution vested in Congress. Thursday’s decision in Brown v. U.S. Department of Education then “vacated” the ed department’s loan-cancelation plan, rendering it legally non-existent and striking a huge blow to the Biden administration.

Student Loans: DOJ Says Overruling Biden’s Forgiveness Could Lead to Lawsuits Over ‘Virtually All Federal Action’

All power should reside with the STATES except for what is specifically given to the federal government by the Constitution.

Shopping Spree 101: How Refunds of Federal Loan Overpayments Leave Student Borrowers With Your Money to Burn

For many college students, one of the most exciting events in a new semester is not listed on their school’s calendar: Refund Day.

Although the day differs on various campuses, the windfall result is the same: That’s when the millions of students currently taking out federal college loans find out how much of their approved amount is left over after the school has taken its share for tuition and other charges. Students can reject the refund and reduce their debt, or accept the money. Although they are technically required to spend it on education-related expenses, administrators acknowledged there’s no mechanism in place to monitor their expenditures. 

“I’m 23, if you give me a refund check, I’m going shopping,” one Philadelphia student told a focus group about student loans and debt relief run by New America, an education think tank. “I don’t understand what that means – You just gave me free money. And no one’s stopping me ‘cause it comes to me.”