AMERICANS HAVE MORE THAN 1.5 TRILLION IN HIGHER ED COLLEGE DEBT.
Elizabeth Warren says her plan to eliminate student loan debt can bypass Congress on the first day of her administration, using legal tools.
She will direct her secretary of Education to begin to “compromise and modify” federal student loans up to $50,000 for 95% of those with outstanding student debt, or 42 million people. She would forgive up to $50,000 in student debt for individuals with household incomes under $100,000.
She introduced a bill over the summer to cancel the bulk of the nation’s outstanding student loan debt.
Warren released a letter written to her by three legal experts who vouched for the legality of a president canceling student debt through executive action. The experts, based at the Project on Predatory Student Lending at Harvard Law School, described such a move as “lawful and permissible.”
THIS CAN BE DONE RIGHT NOW !!!!!
The experts, Eileen Connor, Deanne Loonin and Toby Merrill, cited a provision of a sweeping higher education bill passed in 1965 under President Lyndon Johnson. The provision grants the Education secretary the authority to “modify” existing loans, they wrote, adding that the secretary “has the authority to modify a loan to zero.”
but …. NOT SO FAST
Higher education expert Mark Kantrowitz said that authority did not extend to all student loans.
Mark Kantrowitz makes all his money on the back of the public selling how to get those loans. FinAid was originally founded by Mark Kantrowitz
Mark Kantrowitz ~ “The U.S. Department of Education does not have the discretionary authority to cancel student loan debt except in limited circumstances specified by the statute, such as death, disability or closed schools,” Kantrowitz said.
“Likewise, the authority to compromise debt is limited to situations in which the borrower demonstrates severe financial distress.”
He also serves as publisher of PrivateStudentLoans.guru, a web site that provides students with smart borrowing tips about private student loans. Mark has served previously as publisher of the Cappex, Edvisors, Fastweb and FinAid web sites.
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Luke Herrine, CURRENTLY a Ph.D. student at Yale Law School was legal director of the Debt Collective, which successfully lobbied for the debt forgiveness of thousands of for-profit college students. As I just explained to a reporter, the meaning of a law depends on the political context in which it is interpreted/used. Changing the political context means changing the way the law can be used. Part of what Warren’s announcement today does is change the political context.
ISA = Indentured Servitude Agreement
is planning to morph federal student loans into investor-owned indentured-servitude agreements (ISAs).
Tuning in at #FSATC2019 for a mystery session, added at the last minute, on a new experiment through Ex-Sites Initiative on “investing in student success.” Telling that this is the only non-keynote session led by a political appointee and wasn’t included in the printed materials.