In 2023, the Supreme Court ruled the Biden administration overstepped its authority in trying to cancel or reduce student loan debt, effectively killing the $400 billion plan that would have canceled up to $20,000 in federal student loans for 43 million people. Of those, 20 million would have had their remaining student debt erased completely.
Elaine Parker of the Job Creators Network Foundation says just as a policy matter, this latest bailout effort suffers from the same fundamental problem that the first one had: "It does nothing to hold colleges accountable for their role in overcharging these students."
"What the president is really trying to do in an election year is buy votes," says Parker. "What the administration really needs to do is look at how to solve this problem and hold these colleges accountable who continue to overcharge students instead of just lawlessly ignoring a Supreme Court decision from last year that said he didn't have the authority and that it was unconstitutional for him to forgive loans; it's up to Congress."
Talking to supporters Monday in battleground Wisconsin, Biden blamed Republicans for people's debt.
"Tens of millions of people's debt was literally about to get canceled, but then some of my Republican friends and elected officials and special interests sued us, and the Supreme Court blocked us," he said. "But that didn't stop us."
Through the Higher Education Act, Biden is proposing a sweeping initiative to slash student debt for nearly 30 million Americans. However, states have filed a lawsuit against the effort, meaning the nation could see more legal challenges against the president's actions.
Additionally, Parker notes that Congress last year also passed a bipartisan bill canceling his student debt bailout plan.
Another issue for the president is the separation of powers that is in the Constitution. So far, the judicial and legislative branches have spoken, but the executive branch is ignoring them both.
All things considered, Parker says Biden is "acting like a king and not a president."
