Reality: There Is No Such Thing As Student Loan ‘Cancellation.’ Someone Still Has To Foot The Bill.
This week, Elizabeth Warren unveiled a plan to “cancel” billions of dollars worth of student loans without involving Congress. She believes a legal loophole may allow her to erase the debt with the stroke of her pen, no questions asked.
The most obvious problem with exploiting this loophole is that it probably doesn’t actually exist. The next most obvious problem is that this would represent a seismic expansion of executive power, which would be ironic given all of the concern among Democrats that Trump wants to be a dictator.
But there are two even larger and more fundamental issues with any plan to cancel student loans.
First, there is no such thing as “canceling” student loans. What various Democrat candidates have proposed are plans to transfer, not cancel, the outstanding debt of millions of college graduates. They wish to remove the burden of the loans from the people who agreed to the loans and have received their degrees in exchange for it, and place that burden on the shoulders of people who did not agree to the loan and did not receive anything in exchange for it. Student debt will still be paid; we would just be taking the funds from someone else’s pocket.
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The most obvious problem with exploiting this loophole is that it probably doesn’t actually exist. The next most obvious problem is that this would represent a seismic expansion of executive power, which would be ironic given all of the concern among Democrats that Trump wants to be a dictator.
But there are two even larger and more fundamental issues with any plan to cancel student loans.
First, there is no such thing as “canceling” student loans. What various Democrat candidates have proposed are plans to transfer, not cancel, the outstanding debt of millions of college graduates. They wish to remove the burden of the loans from the people who agreed to the loans and have received their degrees in exchange for it, and place that burden on the shoulders of people who did not agree to the loan and did not receive anything in exchange for it. Student debt will still be paid; we would just be taking the funds from someone else’s pocket.
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