Federal Judge Blocks Biden's Student Loan Forgiveness Plan

Facts

• Pres. Biden’s executive action canceling billions in student loan debt was put on hold Thursday after a ruling by Judge Mark Pittman of the US District Court for the Northern District of Texas.¹
• The case in question was brought by the conservative Job Creators Network Foundation on behalf of two federal student loan borrowers. One doesn’t qualify since their loans are held by a commercial lender, and the second qualifies but believes he should receive more relief based on his income.²
• The president’s plan would cancel up to $10K in debt for individuals making less than $125K per year and up to $20K for those who received Pell grants. The Congressional Budget Office estimates the plan will cost about $400B.¹
• The admin. cited the Heroes [Higher Education Relief Opportunities For Students] Act of 2003, which grants power to the government to waive student loan regulations in times of war or emergency, as its reasoning behind issuing the order.¹
• Pittman said the Biden admin. needs congressional authorization to take such drastic measures of economic importance, arguing that the HEROES Act doesn’t give “clear congressional authorization” in this instance. Job Creators Network Foundation President Elaine Parker said the ruling protects 'the rule of law.'³
• At least 26M borrowers have applied for relief under Biden’s order, which was already on hold while the Eighth US Circuit Court of Appeals considers a lawsuit by six states challenging the president's plan.⁴

Sources: ¹New York Times, ²NPR Online News, ³Breitbart and ⁴USA Today.

Narratives

• Right narrative, as provided by PJ Media. The Biden admin. thought it could get away with getting this case dismissed on standing, like previous challenges to the plan. But once the judge ruled the plaintiffs had standing, the president’s student debt handout didn’t stand a chance. The defense was built on the cynical use of a “national emergency” to circumvent the Constitution. Even if it takes a SCOTUS ruling, this illegal plan will ultimately go down in flames.
• Left narrative, as provided by Intercept. The challengers to Biden’s plan — wealthy companies and individuals, some who even serve in Congress — are as hypocritical as they come considering how much government debt relief they received via the Paycheck Protection Program. Now they’re throwing as many lawsuits as they can at the admin., so even if they can’t hand Biden a loss, they can delay his program long enough that it will feel like a defeat.

Predictions