Biden’s Plan to Cancel Student Loans is Halted by a Federal Judge in Texas

Biden’s Plan to Cancel Student Loans: On Thursday, a federal court in Texas ruled against President Biden’s plan to cancel student loans, giving the conservative advocacy organization that had filed to stop the scheme a victory.

The Cancellation of Student Loans Proposed by Biden

A proposal to cancel student loans proposed by Vice President Joe Biden was put on pause after the 8th Circuit Court of Appeals ordered a temporary stay a month ago. On Thursday, a federal court in Texas put a stop to the scheme, which was already on hold.

In October, a conservative organization known as the Job Creators Network Foundation filed a lawsuit in federal court in Fort Worth, arguing that the Biden administration violated federal procedures by failing to seek public input on the program. The lawsuit claims that the administration violated these procedures by failing to seek public input.

The complaint was brought on behalf of two borrowers: one of whom was said to be ineligible for the relief, and another of whom was said to be disqualified for the maximum debt forgiveness of $20,000 The remedy was said to have been offered by the government. According to the allegations made in the lawsuit, the administration of Vice President Joe Biden broke federal processes when it did not provide borrowers the opportunity to make public feedback before the launch of the program.

U.S. District Judge Mark Pittman, who was appointed by former President Donald Trump, deemed the program to be “illegal.” He did so by citing the Higher Education Relief Opportunities for Students Act (HEROES), which was passed in 2002 and gives the Education Department the authority to grant waivers to recipients of financial aid.

Pittman wrote in his ruling that “this case involves the question of whether Congress — through the HEROES Act — gave the authority to implement a program that provides debt forgiveness to millions of student-loan borrowers, totaling over $400 billion.”

“This case involves the question of whether Congress — through the HEROES Act — gave the authority to implement a program that provides debt forgiveness to millions of student-loan borrowers.” And having read the HEROES Act, the Court has concluded that it does not give ‘clear congressional authorization for the program that the secretary has proposed.

Biden's Plan to Cancel Student Loans
Biden’s Plan to Cancel Student Loans

The Justice Department has indicated that it intends to file an appeal against the verdict. In a statement issued late on Thursday night, the press secretary for the White House, Karine Jean-Pierre, stated that “we strongly disagree” with the verdict.

The statement read in part, “The president and this administration are determined to help to work 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.” “Our opponents – backed by extreme Republican special interests – sued to block millions of Americans from getting much-needed relief.”

The injunction that was issued on Thursday is the most recent in a string of legal challenges to the program that was initiated by the administration of Vice President Joe Biden in October. The White House said last week that about 26 million people in the United States had submitted information to the Department of Education to have their student loans reviewed for possible cancellation.

Elaine Parker, president of the Job Creators Network Foundation, stated the verdict saying, “This ruling supports the rule of law, which compels all Americans to have their views heard by their federal government.” Parker’s comments came in response to the ruling. “The greedy and bloated universities that raise tuition far more than the rate of inflation year after year while sitting on $700 billion in endowments are the main cause of unaffordable tuition.

This unlawful effort at a student loan bailout would not have done anything to address this core cause. We have high hopes that today’s ruling by the court will pave the way for more lasting solutions to the problem of excessive student debt.”

In August, Vice President Joe Biden made public his proposal for a debt relief plan that will erase up to $20,000 in debt for Americans with annual incomes of less than $125,000 individually or $250,000 jointly.

In response to an emergency motion brought by attorneys for several Republican-led states in September, a lower court ruled that their lawsuit stop the debt forgiveness program lacked standing. In October, the 8th Circuit Court of Appeals put a temporary stay on the program in response to the emergency motion brought by the attorneys.

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