According to this news, Federal Court Strikes Down Biden’s Student Loan Forgiveness Program. President Joe Biden’s student loan forgiveness scheme has been declared unlawful by a federal judge in Texas.
On behalf of two borrowers who weren’t eligible for debt relief, the Job Creators Network Foundation, a conservative organization, filed the case in October.
The Biden program was already suspended because of a different legal issue.
According to the Biden administration, a 2003 statute known as the HEROES Act granted the secretary of education extensive authority to discharge student loan debt.
However, the federal judge in Texas concluded that the law does not give the executive branch express congressional power to establish the student loan forgiveness program.
Judge Mark Pittman, who was appointed by then-President Donald Trump, said that “the program is clearly an illegal exercise of Congress’s legislative power and must be annulled.”
In this nation, he said, “we are not governed by an all-powerful executive with a pen and a phone.”
White House press secretary Karine Jean-Pierre said in a statement that “we strongly disagree with the District Court’s verdict on our student debt relief program.” The Justice Department announced Thursday that it would appeal the ruling.
“For the 26 million borrowers who have already provided the Department of Education with the necessary information to be considered for relief from debt – of whom 16 million have already been approved for relief – the Department will hold onto their information so it can quickly process their relief once we win in court,” Jean-Pierre said.
Since the 8th US Circuit Court of Appeals placed an administrative stay on the program on October 21, the Biden administration has been prohibited from erasing any debt.
Six Republican-led states filed that complaint, and the appeals court has not yet made a decision. On October 20, a lower court judge dismissed the action, concluding that the states lacked the authority to file the claim.
Several further legal challenges to the scheme are being made against the Biden administration. Amy Coney Barrett, a Supreme Court justice, rejected two different motions to challenge the program.
Individual borrowers who made less than $125,000 in either 2020 or 2021, married couples, or heads of households who made less than $250,000 in either of those years are qualified for up to $10,000 of their federal student loan debt to be canceled under Biden’s proposal.
A borrower is qualified for up to $20,000 in debt forgiveness if they also obtained a federal Pell grant while attending college.
In the case that was decided on Thursday, one of the plaintiffs was ineligible for the student loan forgiveness program because her loans were not held by the federal government, while the other plaintiff’s debt relief eligibility was limited to $10,000 because he did not earn a Pell grant.
They claimed that because the administration did not follow the Administrative Procedure Act’s proper notice-and-comment rulemaking procedure, they were unable to express their disapproval of the program’s guidelines.
Elaine Parker, president of the Job Creators Network Foundation, said in a statement on Thursday that the decision “protects the rule of law, which ensures that all Americans have their views heard by their federal government.”
Bernie Marcus, a significant supporter of Donald Trump and the former head of Home Depot, launched the advocacy group.
Due to a pandemic-related benefit, payments on federal student loans have been suspended since March 2020. They’ll start up again in January.
New information has been added to this story.