Biden’s Student Loan Bailout Axed by Federal Court
(TheRedWire.com) – Late last summer, President Joe Biden announced he would grant $10,000 in student loan forgiveness and up to $20,000 for those with Pell Grants for individuals making under $125,000 per year or $250,000 for married couples. The executive action might have cost over $400 billion. On Thursday, November 10, Federal District Judge Mark Pittman cast a massive blow to Biden’s move when he axed the loan bailout.
Pittman agreed with the Job Creators Network that the action was illegal and violated the separation of powers. The administration argued it used the 2003 HEROES Act to justify the unilateral action. The judge added the president’s order either delegated or usurped legislative power from Congress on the most massive scale seen “in the history of the United States.”
" …it is fundamental to the survival of our Republic that the separation of powers as outlined in our Constitution be preserved."https://t.co/HKB03DrOqk
— Daily Wire (@realDailyWire) November 11, 2022
In his opinion, Pittman wrote the US isn’t ruled by “an all-powerful executive” but through a Constitution which created three independent branches of government. He quoted James Madison in Federalist No. 47, suggesting the move amounted to the definition of “tyranny.” The judge added the HEROES Act did not give the executive branch congressional authorization to forgive student loans.
In October, the Job Creators Network filed the lawsuit on behalf of two federal student loan borrowers. One didn’t qualify to receive the full benefit of Biden’s program because the borrower didn’t have a Pell grant, and the other didn’t qualify because of commercial loans. Both sued on the grounds that the program’s creation violated the Administrative Procedure Act.
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