The US District Court in Texas on Thursday night blocked President Joe Biden’s student loan forgiveness program on the grounds that the administration did not have the authority to do so.
The new ruling is in addition to a ruling from the Eighth US Circuit Court of Appeals, which put a program on it about three weeks ago when it was considering another lawsuit that was brought six countries oppose this plan with the permission of the president to do the work.
The administration has said it could offer broad debt forgiveness under a 2003 law authorizing such measures during a national emergency. In this case, the emergency is the epidemic.
The Texas lawsuit was brought by the Job Creators Network Foundation, which describes itself as “a non-political organization founded by entrepreneurs who believe that the best defense against bad government policies is informed people.”
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“In this case, the HEROES Act – the law providing loan assistance to soldiers who defend our country – does not give the executive branch the authority of Congress to create a $400 billion student loan forgiveness program,” wrote the judge in the case, Mark. Pittman, appointed by former President Donald Trump. “This program is an unconstitutional act of Congress and must be repealed.”
“The court sees the conflict that is happening in our country as it is happening in the world,” this opinion continues. “But it is essential to the survival of our Republic that the separation of powers as defined in our Constitution be maintained. And by interpreting the HEROES Act, the Court says that it does not give ‘clear congressional approval’ to the Plan proposed by the court. Secretary.”
White House press secretary Karine Jean-Pierre he said in a speech that the Department of Justice appealed.
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“We will never stop fighting for hardworking Americans who are most in need – no matter how many our opponents and our special interests try to put in our way,” said Jean-Pierre, adding that the Department of Education will hold on to the information that 26 million. borrowers are assigned to the Department to quickly process their assistance if we win in court.
The Job Creators Network Foundation praised the ruling, saying it does not address what it says is the real reason so many people carry student loan debt.
“This illegal student loan debt settlement effort has done nothing to address the root cause of unaffordable tuition: greedy and bloated colleges that raise tuition above inflation every year to the tune of $700 billion,” said Elaine Parker, president of Job. Developers Network Foundation. “We hope that the court’s decision today will lay the groundwork for real solutions to the student loan crisis.”
About 26 million people have applied for student loan forgiveness, under the program announced by the president in August. It would erase $10,000 in student loan debt for those making less than $125,000 or households with an income of less than $250,000. People who received Pell Grants in college would have an additional $10,000 in debt forgiven.