Canceling student debt has been a lucrative political football for a long time, with Democrats promising to wipe out the bills and financial obligations for many of their voters in an apparent attempt to buy votes.
Corporate media, which favors a Biden Presidency, has found a giant honey pot for Biden this week, reporting: “BREAKING: The Supreme Court has denied a request to delay $6 billion in student debt relief under an approved settlement, paving the way for the Education Department to continue to discharge the debts of hundreds of thousands of borrowers.”
It is nirvana for Democrat strategists.
In the past, the promise has been floated out by Democrats that all of the student debt will be wiped out as a way to get attention, and then voters have been very disappointed to find out that in the end, they have to pay their bills.
Canceling student debt was always viewed as something hugely unfair to the people who did things the right way, saved their money, paid their own way, and were responsible for themselves and their families.
Democrat Joe Biden, who is always sinking in the polls with American voters, was given a massive gift by the US Supreme Court this week, which apparently is trying to assist the failing President and help keep him viable for the next big election he faces.
However, the truth is that the big story of the week about student debt- is not the big pile of money they really hoped for.
While the SCOTUS ruling is not about Biden’s student loan forgiveness plan, which is currently on hold and before the US Supreme Court justices awaiting a ruling, the political buzz will certainly make Biden look like he has tackled something that no other POTUS has ever done.
it is big, however, it is the pot of gold at the end of the rainbow- yet.
“This is not related to Biden’s College debt forgiveness. Supreme Court allows $6 billion student loan debt settlement The justices declined to intervene over a class-action settlement that could lead to the cancellation of more than 200,000 loans based on claims that colleges…” one poster wrote on Twitter.
Biden’s broader effort to forgive student loan debt, which is also before the justices, is likely to see a ruling due in the next two months.
This ruling is a class-action settlement that SCOTUS refused to block, concerning loans that borrowers claim should be canceled because they were taken out based on misrepresentations made by their schools, many of which are for-profit.
The case arises from a settlement that California-based U.S. District Judge William Alsup approved in November in a case brought by borrowers. The government has already started implementing the settlement.
Conservative Brief reported on the details of the newest ruling:
The Supreme Court announced on Thursday that it would not block the $6 billion in relief for former students, many of for-profit colleges, who claim they were misled about potential job prospects and academics.
Citing a Reuters report, they added:
“The justices turned away a request from three colleges that are challenging a settlement between the U.S. Education Department and borrowers that linked the colleges to claims of substantial misconduct, an allegation they dispute. Three of the schools identified in the settlement – for-profit Lincoln Educational Services Corp (LINC.O) and American National University Inc as well as nonprofit Everglades College Inc – challenged the agreement after it was approved by a federal judge in California last November. Around 3,500 borrowers entitled to automatic loan discharge under the settlement attended one of the three schools.”
Rueter’s report continued:
Three of the schools identified in the settlement – for-profit Lincoln Educational Services Corp (LINC.O) and American National University Inc as well as nonprofit Everglades College Inc – challenged the agreement after it was approved by a federal judge in California last November. Around 3,500 borrowers entitled to automatic loan discharge under the settlement attended one of the three schools.
The decision was separate from a case pending before the high court over the legality of President Joe Biden’s plan to cancel $430 billion in student debt for about 40 million borrowers. A ruling in that case is expected by the end of June.
The latest dispute stemmed from a class-action settlement under which the Education Department would automatically cancel the debt of nearly 200,000 borrowers who attended 151 schools.
“The Supreme Court is already considering two legal challenges over President Joe Biden’s signature one-time debt relief plan. That massive initiative would allow up to 40 million borrowers to receive $10,000 or more in federal student loan forgiveness. The Court held a historic hearing in February where the justices hammered attorneys on both sides of the dispute, and it’s expected to issue a ruling in June. In the meantime, no borrowers have received loan forgiveness under the initiative,” Forbes reported.
“But now, another legal dispute over a smaller, but still significant student loan forgiveness initiative is being appealed to the Supreme Court. It’s too early to know what the Court will do. But here’s what borrowers should know,” the outlet added.
