this post was submitted on 01 Jul 2023
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President says ‘the court misinterpreted the constitution’ as he announces intention to use another law for debt forgiveness

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[–] [email protected] 14 points 1 year ago (2 children)

I just had a crazy thought that likely would not pan out. So the Supreme Court said the executive branch can’t “transform” the loan. Apparently though the option was there to provide loans that, if used for a specific purpose, were partially or completely forgivable.

Why not just issue equivalent loans, with the stipulation that they must be used for the student loans? If the disbursed amount is not used for student loans within X time period, they are not forgiven and accrue interest.

It is not “transforming” the loan, and unlike the PPP loans there is a vested interest in making sure it is used for the right purpose. Granted, it could become a logistical nightmare to run it smoothly.

[–] [email protected] 13 points 1 year ago* (last edited 1 year ago) (1 children)

Sounds like a novel legal idea, the problem is the Supreme Court would find some rationale for their foregone conclusions...

Edit: I wonder if he could just make the mandatory payment $0...

[–] [email protected] 1 points 1 year ago (1 children)

Even if they could just make payments $0 the next president could change it. For this to work the actual amount owed needs to be reduced somehow or its just kicking the can down the road.

[–] [email protected] 2 points 1 year ago

To be fair, I don't imagine that would be politically conducive to being reelected.

[–] [email protected] 2 points 1 year ago

That could be an avenue. It would be kinda like PPPs but for student loans. But I could see a lot of people misusing them, similar to PPP