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    HomeBreakingBREAKING: Federal Court Declares Biden’s Student Loan Bailout Is Illegal

    BREAKING: Federal Court Declares Biden’s Student Loan Bailout Is Illegal

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    The start of Joe Biden’s student debt reduction initiative was announced for August of this year. A lot of people think it was an effort to buy votes before the midterm elections.

    “The Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients,” according to a statement released by the White House in August.

    The Department of Education would be “Cutting monthly payments in half for undergraduate loans. The Department of Education is proposing a new income-driven repayment plan that protects more low-income borrowers from making any payments and caps monthly payments for undergraduate loans at 5% of a borrower’s discretionary income…”

    However, Biden’s initiative has now been declared invalid by a federal judge in Texas. An unfair attempt by the administration to revoke student loans has failed.

    Thankfully appointed by Trump, U.S. District Judge Mark Pittman ruled that Biden’s debt relief plan was “an unconstitutional exercise of Congress’s legislative power and must be vacated.”

    According to Politico, “The Education Department had already been prohibited from moving ahead with Biden’s student debt relief program under a temporary order from a federal appeals court in a separate case.”

    However, the most recent ruling goes much further by permanently banning the Education Department from implementing the entire program.

    On Thursday night, the Biden administration moved quickly to submit an appeal. Administration officials “strongly disagree” with the decision, according to White House Press Secretary Karine Jean-Pierre, and will continue to defend the debt relief program in court.

    According to a statement from Jean-Pierre, “The President and this Administration are determined to help working and middle-class Americans get back on their feet, while our opponents – backed by extreme Republican special interests – sued to block millions of Americans from getting much-needed relief.”

    Although the program’s website claims that it will not accept new debt relief applications, the decision did not immediately state whether the department would accept new debt relief applications.

    More on this story via The Republic Brief:

    “The Biden administration has approved 16 million applications for student debt relief, according to the department. Many of those decisions have been sent to the agency’s contracted loan servicers, which have been instructed to hold off on reducing borrowers’ loan accounts amid the legal fights,” Politico’s report continued.

    Jean-Pierre said that the Education Department would “hold onto” the information it has for 26 million borrowers who already applied for debt relief or were identified by the agency as automatically eligible, “so it can quickly process their relief once we prevail in court.”

    The new legal roadblock for the Biden administration comes a day after the president credited student debt relief as one of the issues that drove high voter turnout from young voters for Democrats during this week’s midterm elections. CONTINUE READING…

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