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Joe Biden lays out new student debt relief plan after supreme court ruling (www.theguardian.com)

submitted 1 year ago by NecoArcKbinAccount@kbin.social to c/news@kbin.social

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President says ‘the court misinterpreted the constitution’ as he announces intention to use another law for debt forgiveness

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[–] ndguardian@lemmy.studio 13 points 1 year ago (4 children)

I just had a crazy thought that likely would not pan out. So the Supreme Court said the executive branch can’t “transform” the loan. Apparently though the option was there to provide loans that, if used for a specific purpose, were partially or completely forgivable.

Why not just issue equivalent loans, with the stipulation that they must be used for the student loans? If the disbursed amount is not used for student loans within X time period, they are not forgiven and accrue interest.

It is not “transforming” the loan, and unlike the PPP loans there is a vested interest in making sure it is used for the right purpose. Granted, it could become a logistical nightmare to run it smoothly.

[–] strykerx@kbin.social 2 points 1 year ago

That could be an avenue. It would be kinda like PPPs but for student loans. But I could see a lot of people misusing them, similar to PPP

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