Besides fishing for various in district Federal Judges to sponsor Paxton’s lawsuits against the Federal Government, there is Che Ted Cruz – a want-to-be. Student Loan Justice member Jacque Abron calling Ted Cruz out.
The fact that Texas legislators like Ted Cruz are opposing student loan cancellation makes no sense. The state is crushed under $141 billion in mostly federal debt, most of the people with these loans are either republican or independent, and the lending system is truly the most predatory, big-government loan scam in U.S. history. Nearly $10 billion a year in interest alone on this debt is leaving the state every year, accruing to the Department of Education, for loans that LBJ, in 1965, declared would be “free of interest.”
This cannot continue. The least that Sen. Cruz and other Texas legislators could do is return constitutional bankruptcy rights to the loans. But at this late date, frankly, the loans should be cancelled, and the entire program scrapped.
Texas is among several states barring teachers, dentists, nurses, and other professional license holders from renewing their licenses if they are in default on their student loans. Critics say the practice is counterproductive as it impedes Texans’ ability to work and pay back those loans. It burdens the people holding debt to a lifetime of servitude.
In 2018, Texas was holding more than $70 billion of the country’s $1.3 trillion in outstanding student loans. As you can see the amount of student loan debt increased dramatically from 2018 to 2023. Much of the increase is not due to more students going to college. The increases mostly come from interest accumulating, the old loan balance, and origination fees for loan consolidation into a new loan. The critics of students call this well-deserved and the critics of the practice call it counterproductive in Texas and nationally. It impedes a person’s ability to work and makes it even harder for them to pay back their debt.
As the chart shows on an earlier post “Government Profiting on Student Loans,” 8.5 million people over the age of 50 and 2.3 million people over the age of 62 hold ~ $38 to $41 thousand in student loan debt. To add to this? The least amount of time to pay $38,000 back is 20 years. Twenty years of paying $250 per month at 5% interest for a 62-year-old person. The interest rate is reasonable and the amount per month “might” be ok if a person has other resources. Otherwise, it is not happening even as 20 years.
So, why is Ted Cruz picking on students holding student loans? Because, he can. Students have little or no clout in elections and are easy pickings. Many just don’t vote.
History of Discharging Student Loans in Bankruptcy, Angry Bear.