The Case Against Student Debt Relief Barely Even Pretends to Make Sense
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. Its very hard to believe, said Mr. Campbell, the Nebraska solicitor general, and the government doesnt 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 isnt that your burden? she asked. You are bringing this lawsuit and you have to establish standing. And so to the extent were trying to assess whether or not MOHELA is actually going to be injured, I dont think you can answer but the government hasnt 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
Blue Owl
(49,906 posts)Cuz in that rule of men world there's a class pecking order.
jimfields33
(15,451 posts)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)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.
GreenWave
(6,487 posts)ancianita
(35,812 posts)Alexander Hamilton made sure of that from the start.
BeckyDem
(8,361 posts)Actually, Canceling Student Debt Will Cut Inflation
Bidens 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!
ancianita
(35,812 posts)Good read.
You have a great holiday weekend, as well!