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Last night, federal judge Mark Pittman of Texas struck down the administration’s student loan forgiveness program, as an “unconstitutional exercise of Congress’s legislative power” and stating that it “must be vacated.” The lawsuit’s plaintiffs argued that forgiveness outside of pre-existing relief programs can only be enacted through Congress. President Joe Biden didn’t get congressional approval to forgive student debt on such a wide scale; he instead used his authority to enact an executive order. “In this country, we are not ruled by an all-powerful executive with a pen and a phone,” Pittman wrote in his . The plaintiffs also argued that Biden’s plan broke federal procedures by not allowing for a comment period before announcing the program in August. The U.S. Department of Justice has already appealed the decision. However, due to the ruling, the Education Department has taken down the from the studentaid.gov website. Education Department officials remain confident in debt relief plan
The Justice Department appealed the verdict on the Education Department’s behalf yesterday to the 5th Circuit Court of Appeals. “We are not standing down,” asserted Education Secretary Miguel Cardona in a yesterday. “We strongly believe that the Biden-Harris Student Debt Relief Plan is lawful and necessary to give borrowers and working families breathing room as they recover from the pandemic and to ensure they succeed when repayment starts,” he argued. Uncertainty around Biden s debt-relief plan mounts
The was filed in October by the Job Creators Network Foundation on behalf of two borrowers and is the most recent in a long line of lawsuits filed to block the program. Student debt relief was already on a issued by the Eighth Circuit Court Of Appeals following a lawsuit filed by six states claiming potential harm due to losing tax revenue. However, Pittman’s decision did what the earlier suits didn’t — it led to a complete hold on the entire program. While this doesn’t mean that forgiveness is off the table, it does give the administration more hoops to jump through. Since Biden announced the program, the administration has received intense backlash — mostly from Republicans, who have historically opposed such measures. The plan has faced multiple lawsuits from state representatives, borrowers and organizations. All suits have since been dismissed except for the two lawsuits in question. At this time, federal courts have not announced when verdicts will be reached. Student loan forgiveness is still possible
Cardona said that over 26 million borrowers have already applied for forgiveness, and 16 million applications have been approved. He stated that the approved applications will be “sent to loan servicers to be discharged when allowed by the courts.” Until the final rulings are announced, federal borrowers can sign up for the Education Department’s so they don’t miss out on any forgiveness news. Borrowers can also use this time to prepare for the resumption of federal student loan payments on . If a decision isn’t reached before the payment pause expires or if the forgiveness program is ruled unconstitutional, it’s important to have a repayment plan in place so as not to fall behind on payments. SHARE: Hanneh Bareham specializes in everything related to student loans and helping you finance your next educational endeavor. She aims to help others reach their collegiate and financial goals through making student loans easier to understand. Related Articles