President Biden reneged on his student loan repayment pledge after the courts sent his distribution plan to a standstill amid a series of legal troubles.
Fox News contributor James Freeman joined “America’s Newsroom” to discuss why he calls Biden’s student loan grant “unconstitutional” and why he thinks his timing in the pause is strategic.
“This is really, I think, the greatest abuse of this era in terms of being blatantly unconstitutional,” Freeman told Mike Emanuel. “We all understand that the legislative power in this country lies with Congress. He should have a congressional mandate to appropriate huge sums of money. He hasn’t.”
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He continued, “He has recently pretended to have made, with the outlandish claim of having signed a bill passed by Congress.” “It was a complete lie that never happened.”
Back in August, Biden promised to end a student loan standstill by December 31, but has since extended it through June of next year.
“The student loan default is going to end,” Biden said. “It will end on December 30. I will extend it to December 31, 2022, and it will end at that time. It’s time to resume payments.”
However, Freeman had his own speculation as to why the president had reversed course on the payment schedule.
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“I think now, going back on his word and saying he’s going to extend the payment moratorium is an attempt to prevent normal payment from resuming before that case, because I think if the appeal happens, those judges, and judges who probably don’t, are going to like the constitutionality or lack thereof of that plan.” In any case, we will see that the world does not end when you often tell wealthy borrowers in a very good job market that they have to pay off their student loans,” Freeman said.
He continued, “A lot of that assistance is going to go to people who don’t need it, other than it being unconstitutional.” “And I think the president doesn’t want the courts to see these people be able to service their loans after all.”
The Wall Street Journal editorial board called the policy “Biden’s eternal emergency,” asking, “Who knows if and when borrowers will have to make payments again.”
Biden announced that the federal government would offer $10,000 in student loan forgiveness to some borrowers earlier this year, but the move has since been challenged in the courts.
“I think it’s very important that we stop calling it canceling or forgiving because that’s not what it is,” Fox News analyst Kat Tempf said during Wednesday’s “Outrun.” “It forces people who have nothing to do with the loan to pay for it, and I don’t see how it’s legal.”
Despite the legal implications, critics point out that the initiative does not actually help those who need it most—the very group they claim to be targeting with these efforts.
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“One aspect that was under-reported along with all the other problems is that there was really a lot of programs for low-income people with high debt loads,” Freeman said. “There’s a lot of forgiveness that was actually available, and it was actually legal.”
“A lot of that bulk of that money is going to go to people in the upper half of the income scale.”
Fox News contributor Joe Concha joined the Outnumbered panel to discuss how Biden’s move doesn’t address the deeper issue at hand — the fact that college is increasingly unaffordable for working families.
“It doesn’t address the bigger problem, which is that you forgive these student loans now and half of them have gone to those with undergraduate or master’s degrees,” Concha said. “Who can pay this? Doctors, lawyers, and that doesn’t address the bigger problem, which is that tuition fees will continue to go up in price for even the highest-income people.”