Another BLOW for Biden Admin’s Plan – What Happens Next?

Federal Appeals Court Rules Against Student Loan Plan

Federal Appeals Court Rules Against Student Loan Forgiveness Plan

( – President Joe Biden announced he would forgive up to $20,000 in federal student loan debt for qualified borrowers on August 24. Since then, the income-based relief plan has faced multiple legal challenges. Concerns have centered on the president’s legal authority to issue such a decree. A Texas-based federal judge’s ruling halted the program, and now the White House has lost its appeal, leaving the student debt forgiveness plan in a tight spot.

On November 10, US District Judge Mark Pittman for the Northern District of Texas ruled in favor of two college students who are ineligible for debt relief. Myra Brown and Alexander Taylor claimed the program was illegal because Biden had no authority to institute it, and the Job Creators Network Foundation assisted them in their legal claims. Pittman called the program unconstitutional in his ruling and halted the forgiveness plan.

After the ruling, the Department of Education paused all applications and froze the program. The Biden administration appealed the district court’s decision, but on November 30, the president received more bad news. The 5th Circuit Court of Appeals upheld the lower court’s decision, maintaining the block on the program. Still, the White House said it would appeal, moving the case into the hands of the US Supreme Court. It is the last hope Biden has to keep his forgiveness program alive.

But Biden has stood by his decision to offer debt relief. On November 22, he extended the repayment pause until June 2023 due to the pending litigation. From his POTUS Twitter account, he declared he maintains confidence in the legality of his plan and expects the Supreme Court to reinstate it.

The Supreme Court has revealed that it will hear arguments on the case in February 2023.

Copyright 2022,