Setback To Biden’s Student Loan Forgiveness Program: Federal Government Stops Taking Applications After Court Ruling

Joe Biden

A Texas District Court blocked President Biden’s student loan forgiveness program because it exceeded the administration’s authority. The federal administration has initiated an appeal already.

The new injunction comes after an 8th US Circuit Court of Appeals block. The court put the package on hold 3 weeks ago even as it deliberated upon a separate suit brought by 6 US states opposing the program plus the authority of the US President to act for it.

The case in Texas was filed by the Job Creators Network Foundation an ultra-conservative group of the non-partisan organization. This entrepreneurs’ group designates itself as the best resistance against what it terms as bad administrative policies. The district judge’s ruling at the court is not a temporary restraining order. The Judge has termed it unlawful thus moving ahead of the 8th Circuit’s injunction.

Judge Ruled That Biden’s Administration Does Not Have Authority To Forgive Student’s Loan

Mark Pittman, the case judge, wrote that the HEROES Act, the law that provides loan support to military people does not authorize the executive wing to grant blanket Congressional permission to create the $400B loan forgiveness program.

Pittman is a Trump appointee and ruled that the attempt by Biden was an unconstitutional use of the legislative powers of Congress and should not be allowed.

The Justice Department will file an appeal according to Karine Jean-Pierre, the press secretary at the White House. She added that the government would continue to fight for hardworking citizens who are in need the most. She said that the administration would not be deterred by the roadblocks the special interest groups and opponents were placing in the way.

She added that the Biden administration would continue to retain the information that 26M borrowers have filed. They said that it will enable them to process the relief faster once it triumphs in the court. But the administration has stopped accepting student applications for the moment.