If we're going strictly by the letter of the 2003 HEROES Act, no, as the statute specifically requires the Department of Education to make third party creditors whole when modifying student loans.
However, one of the states' arguments in Biden v Nebraska is that the state agencies administering student loans are being harmed by the White House program and are not being made whole.
Yet another reason the entire program is a Constitutional dumpster fire of lawlessness
Article 1 section 10 at the constitution. The contract clause.
No state shall pass any Law impairing the obligation of contracts.
Does this mean the federal government is exempt from this?
If we're going strictly by the letter of the 2003 HEROES Act, no, as the statute specifically requires the Department of Education to make third party creditors whole when modifying student loans.
However, one of the states' arguments in Biden v Nebraska is that the state agencies administering student loans are being harmed by the White House program and are not being made whole.
Yet another reason the entire program is a Constitutional dumpster fire of lawlessness