Republican freshman Senator Eric Schmitt is pleased the Supreme Court has joined the argument of a case he brought — even as President Biden has promised to find a workaround.
In one of his last acts as Missouri Attorney General before entering the Senate earlier this year, Schmitt filed suits with six other attorney generals, arguing that Biden’s student loan waiver would cause “irreparable damage” to student loan agencies.
“It was a cheap political ploy by Joe Biden during election season that has now been fully exposed,” Schmitt said of the Biden plan.
“From a legal standpoint, there is absolutely no authority, statutory or otherwise, that would have given Joe Biden the ability to write off half a trillion dollars worth of student loan debt with the stroke of a pen.”
New Senator Eric Schmitt is pleased the Supreme Court has joined the argument of a case he brought — even as President Biden has promised to find a solution
“This is an important case for the court to affirm that something like this is going to happen and Congress has to vote for it.” “Of course that wouldn’t go through Congress,” he said.
In its final ruling ahead of a summer recess, the Supreme Court rejected Biden’s long-delayed program that would have forgiven up to $20,000 in student debt estimated to cost around $400 billion.
Democratic Biden challenger Robert F. Kennedy echoed Schmitt’s opinion, accusing Biden of not trying to cooperate with Congress on debt relief.
“Biden knew his plan would not stand up to legal challenge.” “His plan gave the appearance of action but achieved nothing,” Kennedy claimed.
“This is an issue of great concern to our country.” As President, I will mobilize popular support to pressure Congress to abandon its partisan positions and enact meaningful relief for the tens of millions of Americans drowning in college debt .”
Instead, Biden is looking for another workaround to unilaterally push debt relief: the Higher Education Act.
“This new avenue is legally sound.” “It will take time, but I think it’s the best avenue left to provide debt relief to as many borrowers as possible,” Biden said.
However, some legal scholars say Friday’s Supreme Court decision suggests the court is unlikely to allow student debt relief through other legal avenues either.
In one of his last acts as Missouri Attorney General before entering the Senate earlier this year, Schmitt filed suits with six other attorney generals, arguing that Biden’s student loan waiver would cause “irreparable damage” to student loan agencies
Students protest Supreme Court ruling on President Joe Biden’s student debt relief program
The court’s conservative judges have pointed to a legal doctrine that says Congress must clearly delegate powers to an agency before it is able to resolve an important issue through large-scale or costly new regulations. Ultimate use of the HEA can take months or over a year.
And another transformative student loan policy is still afoot.
The Department of Education has proposed an earnings-related repayment overhaul that would cost $250 billion instead of the $430 billion of debt relief.
This would lower the monthly payment cap from 10 percent to 5 percent for those participating in income-tested repayment plans. For low-income people, monthly payments can go as low as $0. After a set number of years – usually 20, sometimes 25 – the balance is waived.
Although the Department of Education proposed an easing of earnings-related repayments in January, the rule has yet to be finalized.
Schmitt urged Biden not to find other workarounds for student loan relief.
“I think that’s a pretty radical position and not popular with people,” he said. The senator instead called for more “transparency” in college costs.
While some conservatives argued that the country must emphasize higher education alternatives such as trade schools, Schmitt stressed that lawmakers must make higher education “accessible” to the working class by holding universities accountable for their skyrocketing prices.
“I think we should think about what we’re doing to make the American dream come true for the working class,” Schmitt said. “That’s my background, right?” I didn’t grow up — nobody in my family went to college right out of high school. I certainly didn’t know any lawyers growing up.’
“Education, for me and for so many people who grew up in working-class families, was the way to get things done, so I think we need to make sure that stays attainable,” Schmitt said. “I think we have to hold universities accountable for that.”