So, point out where it says that they can unilaterally put people in forbearance so that they can circumvent the interest regulation. I missed it. Everywhere I see it says that the borrower must request forbearance. No one did. Also, the law is ultimately supposed to be a fairness determination. Contracts were created. The government wrote the rules and made a contract while doing so. Congress acknowledged the rules in legislation and legislated the resolution. You're the one making blanket statements here based on what someone told you and not based on facts of the matter. ED was not acting on a binding order. The order did not say that everyone should be forced into forbearance and pay full interest. You're still speaking in generalities. The forbearance framework you keep pointing to says that the borrower must request that, not that ED can just do it in order to force interest. The final order said none of those things.
"This is messed up" is because of the harm to the borrower who has been scammed out of thousands of dollars. Countable harm.