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| Photo Credit: AP. |
A federal judge in Texas Thursday blocked a student loan forgiveness program undertaken by the Biden administration for millions of Americans.
In August
President Joe Biden announced his student loan cancellation plan as part of his
campaign promise to provide $10,000 in student debt forgiveness for millions of
Americans. The plan also provides up to $10,000 more for students with the
greatest financial need as well as new measures to lower the burden of
repayment for their remaining federal student debt.
U.S.
District Court Judge Mark Pittman who delivered the judgment in Texas ruled the
debt relief scheme illegal, noting that it usurped the power of Congress to
make laws.
Biden’s loan
forgiveness scheme allows borrowers who earn less than $125,000 a year, or
families earning less than $250,000 to be eligible for the $10,000 loan
forgiveness.
Others such
as recipients of Pell Grants, which are reserved for undergraduates with the
most significant financial need, can get up to $10,000 in additional
cancellations by the federal government.
Pittman said
in his ruling that the United States is not “ruled by an all-powerful executive
with a pen” but by “a Constitution” that allows for “three distinct” branches
of government such as the executive, congress and the judiciary
The Trump
appointee advocated for the “separation of powers as outlined in Constitution
to be preserved” in order to foster the survival of “our Republic”.
On October
21 the 8th U.S. Circuit Court of Appeals granted an emergency petition, temporarily
blocking the Biden administration from implementing his loan forgiveness plan
for millions of students’ debt until the next court hearing.
Six
Republican-led states took the Biden administration to court in September
seeking a ruling to halt the scheme, saying it would further damage the economy
which is currently struggling with soaring inflation and high interest rates
imposed by the Feds.
Pittman said
it was not in the court’s place to determine “Whether the Program constitutes
good public policy.”
In a
statement on Thursday following the court ruling, White House Press Secretary
Karine Jean-Pierre said the Biden administration “strongly disagree with the
District Court’s ruling on our student debt relief program and the Department
of Justice has filed an appeal.”
She blamed what she called “extreme Republican
special interests – sued to block millions of Americans from getting
much-needed relief” for the court ruling.
“For the 26 million borrowers who have already given the Department of Education the necessary information to be considered for debt relief – 16 million of whom have already been approved for relief – the Department will hold onto their information so it can quickly process their relief once we prevail in court,” she noted.