The American Tribune.com
    Telegram Facebook
    The American Tribune.com
    • Home
    • Politics
    • Business and Economy
    • Entertainment
    • Sports
    • Commentary
    • Shop Here
    The American Tribune.com
    Politics

    Biden’s Student Loan Bailout Struck Down Again, Faces New Legal Challenges

    By EllisDecember 1, 2022Updated:December 1, 2022
    Facebook Twitter Email

    On Wednesday, a federal appeals court decided to reject the request of the Biden administration to reinstate the student loan debt relief program after it was ruled illegal by a lower district court in Texas.  Biden’s student loan bailout will remain paused after the 5th U.S. Circuit Court of Appeals in New Orleans rejected Biden’s plea to put a stay on the program.

    The Student Loan handout sought to forgive $10,000 in federal student loans for most borrowers and up to $20,000 for PELL grant recipients.  It has been estimated this forgiveness would cost upwards of $400 billion that taxpayers would have to cover.

    The original lawsuit in Texas came from a conservative organization, the Job Creators Network Foundation, who represented borrowers who did not qualify for loan forgiveness.  U.S. District Judge Mark Pittman oversaw the case and sided with the conservative group.

    Pittman condemned the student loan handouts and ruled them illegal.  The Texas judge stated in his ruling:

    “Whether the Program constitutes good public policy is not the role of this Court to determine. “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.”

    “In this country, we are not ruled by an all-powerful executive with a pen and a phone.  Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government … The Court is not blind to the current political division in our country. But it is fundamental to the survival of our Republic that the separation of powers as outlined in our Constitution be preserved. And having interpreted the HEROES Act, the Court holds that it does not provide ‘clear congressional authorization’ for the Program proposed by the Secretary.”

    The three-judge panel in New Orleans chose not to override Pittman’s ruling.  However, the court will expedite the case in the soonest available oral argument.  The court does not contain appointees of Biden, casting doubt on the program’s chances.

    There is also a separate legal challenge from six states led by Republicans.  Missouri, Arkansas, South Carolina, Nebraska Iowa, and Kansas have argued that the student loan bailouts are unlawful and an abuse of executive power.

    The states claimed:

    “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 student-loan debt.”

    “Hiding the real motive, the agency attempts to connect the Cancellation to the pandemic by citing current economic conditions supposedly caused by COVID-19. But those conditions are not directly attributable to the pandemic, so the Department has failed to adequately link the Cancellation to a national emergency.”

    Biden has called on the Supreme Court to step in and rule on the loan handouts, maintaining the legality of his executive authority to forgive the debt.

    The program has sparked controversy around the country as some taxpayers feel it is not their obligation to cover the debt of others.

    "*" indicates required fields

    San Francisco considers funding reparations for slavery at $5 million per black person. Do you support this?*
    This poll subscribes you to our premium network of content. Unsubscribe at any time.
    This field is for validation purposes and should be left unchanged.


    Share. Facebook Twitter Email

    Related Posts

    WATCH: Tulsi Gabbard Says Attacks on Faith, God Drove Her to Leave Democrats

    March 21, 2023

    Wyoming Joins Growing List of States to Ban Men from Competing in Women’s Sports

    March 21, 2023

    Ben Carson Shreds Trump Charges as “Absolutely Absurd,” “Embarassing”

    March 21, 2023
    sponsors
    image

    Use promo code TRIBUNE for big savings

    Whatfinger








    • About
    • Curation Policy
    • Affiliate Disclosure
    • Privacy Policy
    • Terms of Service
    Copyright 2022 The American Tribune

    Type above and press Enter to search. Press Esc to cancel.