The rejection by the court means the program remains on hold.
December 03, 2022
The relief program Biden is attempting to get reinstated will forgive tens of millions of borrows from paying back hundreds of billions of dollars. Not millions, but billions. The program is set up to forgive a federal student loan of $10,000 per borrower. Those with a PELL grant will be forgiven $20,000.
December 03, 2022
On Wednesday, court documents were filed, and a 3-judge panel made a unanimous decision not to override U.S. District Judge Mark Pittman’s decision on November 10, which called the handouts Biden is supporting unlawful. The judge’s decision temporarily suspended the reinstatement of the program.
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The case has been expedited by the New Orleans court and placed on the docket for the “next available” oral argument.
Fox News points out that Biden did not appoint the judges residing in the 5th circuit court. The three judges are Jennifer Elrod, James C. Ho, and James Graves, appointed by former Presidents Donald Trump, Barrack Obama, and George W. Bush.
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Currently, because of two decisions by the court, the student loan program, which has an estimated cost of more than $400 billion, is on hold by the U.S. Department of Education.
One of the decisions was brought by plaintiffs Alexander Taylor and Myra Brown, and the other case was filed by the states of Arkansas, Iowa, Kansas, Nebraska, Missouri, and South Carolina with the St. Louis-based 8th U.S. Circuit Court of Appeals.
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The Biden administration claims the authority to forgive $10,000 student loan debt is allowable based on the HEROES Act of 2003, which allows forgiving debt from student loans when there is a national emergency.
The six Republican states argue the Biden administration’s plan for student loan forgiveness is an “unlawful” abuse of HEROES. The six states have written, “The Act requires a real connection to a national emergency. But the Department’s reliance on the COVID-19 pandemic is a pretext to mask the President’s true goal of fulfilling his campaign promise to erase the student-loan debt."
The Supreme Court has been asked to intervene by Biden, who is “confident" his “student debt relief plan is legal.” In the interim, the student loan repayment plan is extended until June 2023.
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