.. or discharge one … claim” must be matched up into unstated limit on this subject expert purportedly arising from the current presence of brand new authoritative forgiveness software. In short, specifications your Assistant need forgive loans in some points coexist comfortably which have terms the Secretary could possibly get forgive fund in others.
The fresh Flower Memo makes a aggressive factual denial, mentioning an age-post with the suggestion you to default is not only the common station, nevertheless the “only” channel, having FFELP loans ahead towards the federal hand
The new Flower Memo argues your Secretary’s capability to forgive extends in order to defaulted financing; twenty four the HLS Report furthermore signifies that forgiveness authority is limited to help you nonperforming fund. twenty-five The basis for these assertions seems to be that the executive can be forgive simply money in federal hands, and this money less than one system (FFELP) typically come into federal give only when he could be within the default twenty-six or at least nonperforming. twenty-seven Which disagreement ignores the brand new ordinary language of the statute, which provides to have forgiveness out-of federally held claims “yet not obtained.” 28 Even if the typical station certainly sort of money to come on the government hand is by using standard or other nonperformance, new statute clearly forecloses one disagreement one forgiveness authority is bound to help you financing inside government hands in that, or any, route.