A federal judge in Texas has sided with a conservative group to strike down President Joe Biden’s student loan forgiveness program, impacting millions of Americans who desperately need financial assistance.
Job Creators Network Foundation filed the suit in October on behalf of two borrowers whose requests for debt forgiveness were denied because they did not qualify, CNN reports.
One borrower has a loan held by a commercial lender, not the U.S. Department of Education. While the other does qualify for the $10,000 in relief, he wants the $20,000 in relief that borrowers get who were low-income at the time they attended college because of his low-income status currently. Again, he is ineligible.
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Elaine Parker, president of the Job Creators Network Foundation, wrote Thursday, "This ruling protects the rule of law which requires all Americans to have their voices heard by their federal government… We hope that the court's decision today will lay the groundwork for real solutions to the student loan crisis."
Judge Mark T. Pittman, who was appointed by former President Donald Trump, wrote that the loan program was "a complete usurpation of congressional authorization” by the executive branch.
Pittman added:
“This case involves the question of whether Congress—through the HEROES Act—gave the Secretary authority to implement a Program that provides debt forgiveness to millions of student-loan borrowers, totaling over $400 billion. Whether the Program constitutes good public policy is not the role of this Court to determine.21 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.”
The loan forgiveness program has been on a rocky footing since it was signed. This is just the latest in a flurry of legal challenges facing the program.
“We strongly disagree with the District Court’s ruling on our student debt relief program, and the Department of Justice has filed an appeal,” White House Press Secretary Karine Jean-Pierre wrote.
Legal experts were fast to point out the failings of Pittman’s decision.
Luke Herrine, an assistant professor of law at the University of Alabama, told NPR, “My first response was, this is motivated reasoning by a judge who wants to come to this result. The legal analysis is flawed.”
The Justice Department said Thursday it would appeal the decision.
“For the 26 million borrowers who have already given the Department of Education the necessary information to be considered for debt relief — 16 million of whom have already been approved for relief — the Department will hold onto their information so it can quickly process their relief once we prevail in court,” the White House wrote.
Student loan payments are set to resume in January, NPR reports. However, according to CNN, since the 8th US Circuit Court of Appeals put an administrative hold on the loan forgiveness program on Oct. 21, the Biden administration is currently barred from offering debt relief.
“We will never stop fighting for hardworking Americans most in need — no matter how many roadblocks our opponents and special interests try to put in our way,” the White House said.
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