After Biden's election in November, there was increased pressure to cancel student loans. The Swigs circulated a memo to key Capitol Hill figures. This memo made the questionable case that debt cancellation at executive level is illegal. Because the Swigs are major funders of progressive nonprofits and have significant financial backing for Pelosi's House Democratic caucus, the memo has a lot of weight.Last week, President Joe Biden's efforts to cancel student loans were severely hampered by Nancy Pelosi, the House Speaker. She stunned Congress by making a surprise opposition statement. Although it may have put her at odds to many of the Democratic Party's supporters, she aligns herself with Democratic megadonors Steven Swig and Mary Swig. These billionaires scions of Bay Area's oldest realty dynasty, who have strong ties with the California representative. Pelosi's treasurer has been Steven Swig for many years.The memo was intended for INTERESTED PEOPLE and was not distributed to the general public. It asserts that student loan cancellation by executive order is illegal. The President cannot cancel student loan debt with a pen stroke, as the boldface title states. The memo states that there was a lot of enthusiasm recently around Senators Warren's and Schumers' proposal that Joe Biden cancel student loan debt using a pen stroke, as opposed to legislation. The Executive Branch is not authorized by Congress to cancel student loans, according to Capitol Hill attorneys.For many years, the couple has contributed as much as possible to Pelosi's campaign. Steven Swig, who represents California's 12th District, which includes San Francisco, has been treasurer for Pelosis' reelection campaigns from 2012 to 2012. The extended family has strong ties to the Pelosis. From 2018 to March 2018, their niece was a Pelosi staff assistant, legislative correspondent and policy associate. According to Mother Jones, the Swigs even owned mugs that had a photo of Pelosi on it, which they claimed they got from a nephew who worked under her.The Intercept obtained the memo from Freedom to Prosper, an organisation founded by and for the Swigs. According to two sources who were privy to the meetings, the Swigs have in the past directly lobby Pelosi. In which they would suggest rhetoric or policy suggestions that Pelosi would accept in some form, these sources say the couple. The Intercept interviewed several sources for this story. The Intercept only allowed anonymity because of the financial power that the Swigs hold in progressive circles. (They also have contributed millions to the Democratic Party over time.Experts say that despite the fact that memos are certain, it is not clear whether such an executive order would be illegal. Marshall Steinbaum, senior fellow of higher education finance, Jain Family Institute, and an economics professor at Utah's University of Utah, answered questions via email about the debate regarding the executive order. He stated that the executive has the power to cancel student loans and there is no reason not to. The failed experiment that shifted higher education costs onto students while simultaneously enticing more students to the system has caused the lives of many students and workers to be destroyed. It was based on the false assumption of a masters or college degree causing earnings to rise more than enough to repay the debt. This has not happened and it is the students who now bear the brunt of policy failure. Every year, the government and higher education institutions borrow $100 billion more for student loans that will never be repaid.An advocate for student debt cancellation who is closely connected with Congress said that the concession was a ruse given the near impossible possibility of a bill passing in the equally divided Senate. The advocate suggested that they try an executive order to see what happens.It is not impossible to pass an executive order and let the Supreme Court decide. Biden did that recently with his executive order which imposed a moratorium against evictions. The current federal halt in student debt collection suggests that the executive is well-placed. Biden issued an eviction moratorium order after being pressured by progressive members of Congress, including Rep. Cori Bush. Bush chose to stay home and protest outside the Capitol, hoping to address the looming crisis of evictions.Pelosi claims she supports student loan cancellation through congressional legislation, a position that is shared by the Swigs. However, her last week statement marks a departure from her silence. Pelosi stated that the president cannot cancel student debt so it is not even a topic of discussion during a news conference. She said: Let's say your child decides that they don't want to go to college. However, you are paying taxes to pay off someone else's debt. This may make you unhappy.Many in Congress were shocked by Pelosis's statement. Some wondered if she might have misspoken. One staffer shared this to The Intercept. Student debt relief advocates, however, are more skeptical. According to a prominent student debt relief activist who was privy to discussions between Pelosi, Mary and the Swigs about the topic, the only reason she was willing to do it [legislatively] is because Steve and Mary asked her. (A second source confirmed that the discussions were held.Drew Hammill, Pelosi's deputy chief of staff, stated in an email that The Swigs are family friends for many decades. However, he denied that the Swigs influenced her position regarding student debt cancellation. The Speaker's statement was made in response to a reporter's question. It wasn't a proactive announcement. The policy staff who work on this topic have not had any correspondence or conversations with the Swigs.Hammill stated that the Speaker's answer to a reporter's question was based upon her staff's analysis of Presidents authority. The Department of Justice is currently reviewing the President's authority in this area. We believe that the Speaker will support the President using whatever authority he feels necessary to address the student debt crisis in the country. Because she feels it is holding back so many people in this country, the Speaker wants as much forgiveness as possible. However, it must be done in a manner that is recognized by the courts.The Swigs are described by political operatives as a well-meaning couple who donate to worthy causes, but are almost comically outof touch due to their wealth. Salon 2018 published the Swigs' own account of how student debt was discovered. This was not a common story. It was a new concept to us two when it was first shared by our daughter four years ago. It was the story about a talented young artist and a single mother who had to give up her dreams and talents to work in retail so she could repay her student loans.Mary and Steven Swig didn't respond to our request for comment.
