The student-loan forgiveness plan was struck down by a judge.
The Northern District of Texas Court ruled that Biden's plan to forgive up to $20,000 in student debt for federal borrowers who make less than $125,000 a year is not legal.
This was done in response to a lawsuit filed by two student-loan borrowers who were left out of debt relief. One of them didn't qualify for the full $20,000 because he didn't get a grant, and the other didn't because she had commercial loans.
The notice-and-comment procedure of the Administrative Procedure Act requires unelected administrators to justify rulemaking to the public.
There are at least five other major conservative lawsuits that are trying to block student-loan forgiveness. This decision will likely be appealed by the education department.
The Biden student loan program was found to be illegal by the court after they ruled in favor of our motion. One of the largest exercises of legislative power without congressional authority in the history of the United States was criticized by a judge. The rule of law requires all Americans to have their say in the federal government.
The 8th Circuit Court of Appeals put a temporary stay on the debt relief until it made a final decision on its legality, in response to a lawsuit filed by six Republican-led states which argued debt relief would hurt their states' tax revenues.
The HEROES Act of 2003 gives the Education Secretary the power to waive or modify student-loan balances if there is a national emergency. 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.
He wrote that the court held that the Secretary's program didn't have clear congressional authorization.
The Justice Department argued that the HEROES Act does not require notice or comment.
The Secretary's action is tailored to recovery from the national emergency, according to the Justice Department. Any substantive challenge to the program bootstrapped to the Plaintiffs' procedural claim is not likely to succeed on the merits.
According to Biden, 26 million borrowers have applied for debt relief, and the Education Department has approved 16 million of them. It hasn't said if it will extend the student-loan payment pause amid these lawsuits.
The executive director of the Student Borrower Protection Center said that a federal judge colluded with right-wing politicians and corrupt corporations to block life-changing student debt relief for tens of millions of families.
Dark money-backed legal challenges are growing in courts across the country. The student loan system will remain shut off as long as these partisan legal challenges persist, so the Biden Administration needs to use this decision as an opportunity to make it clear. Student loan borrowers shouldn't be sacrificed as pawns in politics.
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