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

OPINION:  This article contains commentary which may reflect the author’s opinion

Joe Biden announced that his student debt relief program would begin in August of this year. Many believe it was an attempt to buy votes prior to the midterm elections.

In August the White House posted in a statement that “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.”

The statement added that the DoE 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…”

A federal judge in Texas has now struck down Biden’s program, though. The administration’s effort to unfairly cancel student loans has been thwarted.

U.S. District Judge Mark Pittman, who thankfully was appointed by Trump, declared Biden’s debt relief program to be “an unconstitutional exercise of Congress’s legislative power and must be vacated.”

“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,” according to Politico.

But the latest decision extends much further in permanently prohibiting the Education Department from carrying out the entire program.

The Biden administration moved swiftly on Thursday evening to file an appeal. White House Press Secretary Karine Jean-Pierre said that administration officials “strongly disagree” with the ruling and would continue to defend the debt relief program in court.

“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,” Jean-Pierre declared in a statement.

The decision did not immediately indicate whether new debt relief applications would be accepted by the department, but the program’s website states that it in fact will not take them.

“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.

It’s obvious Biden and the Democrats knew what they were doing in announcing the program in order to buy votes and steal the election.

“I especially want to thank the young people of this nation,” Biden remarked, saying that they “voted in historic numbers.” Younger voters, he declared, “voted to continue addressing the climate crisis, gun violence, their personal rights and freedoms and the student debt relief.”

The ruling throws uncertainty over the debt relief program just weeks before the Georgia run-off election in December, which could determine Senate control. Senator Rafael Warnock ran on debt relief during his campaign, and Herschel Walker criticized Biden’s proposal as a handout for people who do not need it.

Crying Chuck Schumer denounced Pittman as a “MAGA judge” who was “siding with the special interests over what’s best for the people.” He continued: “This is why we need a Senate Democratic Majority.”

The decision was lauded by conservatives, though. Rep. Virginia Foxx, the top GOP legislator on the House education committee, declared that Biden’s “radical scheme must be eviscerated entirely, and Republicans will continue to support legal challenges to achieve that end.”

“In his 26-page decision, Judge Pittman rejected the Biden administration’s argument that it has the authority to cancel student loans under a 2003 law, known as the HEROES Act, which grants special powers to the Education Department during national emergencies,” Politico continued.

“Whether the Program constitutes good public policy is not the role of this Court to determine,” Pittman wrote. “Still, no one can plausibly deny that it is either one of the largest delegations of legislative power to the executive branch, or one of the largest exercises of legislative power without congressional authority in the history of the United States.”

His ruling sided with a conservative advocacy group, the Job Creators Network Foundation, which had sued to stop the policy on behalf of two student loan borrowers who were left out of the program or would not qualify for the full $20,000 of forgiveness.

Those borrowers had standing to sue, Pittman ruled, because they were injured by the Education Department’s failure to provide them with the opportunity to comment on the proposal. “Plaintiffs have a concrete interest in having their debts forgiven to a greater degree,” he wrote.

Elaine Parker, president of the Job Creators Network Foundation, celebrated the ruling, calling it a victory for “the rule of law which requires all Americans to have their voices heard by their federal government.”

The government student aid website states:

Welcome to Student Loan Debt Relief Is Blocked

Courts have issued orders blocking our student debt relief program. As a result, at this time, we are not accepting applications. We are seeking to overturn those orders.


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