Topline
President Joe Biden’s student loan relief program was struck down by a Texas federal judge who deemed it an “unconstitutional exercise” on Thursday, putting the plan in further jeopardy after it was already on hold following a stay ordered by a federal appellate court.
President Joe Biden stops to talk with reporters as he prepares to leave the White House in … [+]
Key Facts
In his ruling, Texas federal Judge Mark Pittman, a Trump appointee, said the country is not “ruled by an all-powerful executive with a pen and a phone” as the program is a “complete usurpation of congressional authorization.”
The lawsuit against the program had been filed by a conservative group, Job Creators Network Foundation, on behalf of two student loan borrowers.
The program—one of Biden’s major campaign promises—was already on hold after the 8th US Circuit Court of Appeals ordered a temporary halt in October.
The White House said it strongly disagreed with the court’s ruling and would appeal the decision.
Press secretary Karine Jean-Pierre said the Department of Education will continue to hold on to information of the 26 million borrowers who have applied for loan forgiveness and 16 million who have already been approved, “so it can quickly process their relief once we prevail in court.”
Crucial Quote
In his ruling Pittman wrote: “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.”
Key Background
Thursday’s ruling is another blow to one of the White House’s marquee programs. Under Biden’s loan relief program, federal student loan recipients who make less than $125,000 a year would be eligible for $10,000 in forgiveness while Pell Grants recipients could claim $20,000 in loan relief. The White House has argued the program is legal as the secretary of education has the power to modify student loans during an emergency—such as the Covid-19 pandemic—under the 2003 HEROES Act.
Further Reading
Biden’s student loan forgiveness plan is on ice. Here’s what you should know. (Washington Post)
Appeals Court Blocks Biden’s Student Loan Cancellation Plan—For Now (NPR)
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