Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

ancianita

(35,812 posts)
Fri May 26, 2023, 12:31 PM May 2023

The Case Against Student Debt Relief Barely Even Pretends to Make Sense

The case before the Supreme Court has already attracted criticism — even from conservative legal experts who have no love for the Biden administration’s policy. Through tortured logic, the State of Missouri has declared itself the injured party even though it’s the loan servicing company, a separate entity, that would lose revenue. Missouri claimed it would be a secondary victim, since the loan authority owes the state $105 million.

But think about that. If Amazon lays off my friend, and my friend owes me $20, can I sue Amazon for making it harder for me to get my money back?
Of course not. In this case, however, the point should be moot, because recent financial statements revealed MOHELA had not made those payments for the past 15 years, and does not appear to have plans to resume them.

Consider the plaintiffs’ reaction to a question that Justice Ketanji Brown Jackson asked about the extent to which MOHELA might be harmed under the debt relief policy, given that it will receive fees for discharging accounts. “It’s very hard to believe,” said Mr. Campbell, the Nebraska solicitor general, “and the government doesn’t offer any details in its reply brief, that a one-time payment of fees for discharging loans will offset the ongoing fee that MOHELA earns from servicing those loans.”

Justice Jackson responded with apparent incredulity. “But isn’t that your burden?” she asked. “You are bringing this lawsuit and you have to establish standing. And so to the extent we’re trying to assess whether or not MOHELA is actually going to be injured, I don’t think you can answer ‘but the government hasn’t said something.’”...

But whether MOHELA has standing is irrelevant; the loan agency is not a party to the suit.

Compare that with the lengths that normal people must go to in order to prove they are eligible for debt relief. They have to submit mountains of documentation. Their claims are often denied for the most trivial of technicalities — a form filled out with green ink instead of black or blue, an electronic signature instead of inked one.


https://www.nytimes.com/2023/05/26/opinion/student-debt-relief.html

8 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
The Case Against Student Debt Relief Barely Even Pretends to Make Sense (Original Post) ancianita May 2023 OP
Don't they know it's the millionaires and billionaires who need bailing out? Blue Owl May 2023 #1
Right? ancianita May 2023 #2
Part of the equation must be tuition costs at colleges jimfields33 May 2023 #3
It is. Just not in this case before the SCOTUS. ancianita May 2023 #4
Student loans are formulas for perpetual indebtedness. GreenWave May 2023 #5
Yep. Debt in general is designed for that, too. ancianita May 2023 #6
I give you the man. By Joseph E. Stiglitz BeckyDem May 2023 #7
Thanks. I love Joe Stiglitz. ancianita May 2023 #8

jimfields33

(15,451 posts)
3. Part of the equation must be tuition costs at colleges
Fri May 26, 2023, 02:23 PM
May 2023

If colleges believe students will get relief they will just raise tuition that much more. Congress should look at prices and put laws in place that prevents tuition increases except to inflation and not a penny more.

ancianita

(35,812 posts)
4. It is. Just not in this case before the SCOTUS.
Fri May 26, 2023, 02:36 PM
May 2023

In the 80's, universities and colleges decided to raise tuition at many times any inflation rates. What was their reason?
They won't say, but administrators make way more now than professors providing direct education in ever more crowded classrooms. And sports coaches continue to have salaries higher than their schools' presidents. Pretty sure that justices are aware of this tuition history.

Back to the point of the editorial, though. SCOTUS had better rule that this is a bad case and dismiss it over standing. Why they gave it certiorari status makes no sense, either.

ancianita

(35,812 posts)
6. Yep. Debt in general is designed for that, too.
Fri May 26, 2023, 03:05 PM
May 2023

Alexander Hamilton made sure of that from the start.

BeckyDem

(8,361 posts)
7. I give you the man. By Joseph E. Stiglitz
Fri May 26, 2023, 03:46 PM
May 2023

Actually, Canceling Student Debt Will Cut Inflation
Biden’s targeted loan forgiveness will help, not harm, the economy.
https://www.theatlantic.com/ideas/archive/2022/08/biden-student-debt-cancelation-stiglitz/671228/








Have a great holiday weekend!

Latest Discussions»Issue Forums»Editorials & Other Articles»The Case Against Student ...