A federal judge in Texas has stopped President Joe Biden’s student loan forgiveness program.
“Student Loan Debt Relief Is Blocked,” the debt forgiveness portal built by the Biden Administration now reads. “Courts have issued orders blocking our student debt relief program. As a result, at this time, we are not accepting applications. We are seeking to overturn those orders.”
On Thursday, U.S. District Judge Mark Pittman said the president’s order forgiving $10,000 in student loan debt for some borrowers and $20,000 for Pell Grant recipients overstepped the authority granted to the executive branch.
“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,” Pittman, who was appointed by former President Donald Trump, wrote in striking down the forgiveness plan.
Student borrowers have been exempt from making loan payments since the start of the COVID-19 pandemic, though that relief is due to expire in January. Since Biden announced he would carry through with his campaign promise to help alleviate the burden of student debt, more than 26 million people have applied to have some or all of their loans forgiven, according to U.S. Secretary of Education Miguel Cardona.
“We are disappointed in the decision of the Texas court to block loan relief moving forward. Amidst efforts to block our debt relief program, we are not standing down. The Department of Justice has appealed today’s decision on our behalf, and we will continue to keep borrowers informed about our efforts to deliver targeted relief,” he said in Friday statement.
The Biden Administration says that those who have applied will still have their applications processed, provided they win in their efforts to carry through with the plan.
“If you’ve already applied, we’ll hold your application,” the debt forgiveness website reads. “We will post information as soon as further updates are available.”
Biden’s plan hinges on his ability to use the HEROES Act to forgive the debts of non-military personnel. The Department of Justice is of the mindset the law provides for exactly that.
“The Higher Education Relief Opportunities for Students Act of 2003…grants the Secretary of Education authority to reduce or eliminate the obligation to repay the principal balance of federal student loan debt, including on a class-wide basis in response to the COVID-19 pandemic, provided all other requirements of the statute are satisfied,” Christopher Schroeder, an Assistant Attorney General with Office of Legal Counsel advised Education’s lawyers in an August memo.
According to Pittman, Biden is operating outside of Congress’ intentions with a “law to provide loan assistance to military personnel defending our nation,” that “does not provide the executive branch clear congressional authorization to create a $400 billion student loan forgiveness program.”
“Republican officials are trying to stop millions of working and middle class Americans from getting student debt relief,” U.S. Sen. Elizabeth Warren tweeted in response to the decision. “Despite this lawless ruling from a Trump-appointed judge, (Biden’s) legal authority to cancel student debt is clear.”
The Biden Administration’s appeal will now go to the Fifth Circuit Court of Appeals, though many legal watchers are speculating the debt forgiveness plan’s legality is destined to be decided by the U.S. Supreme Court.
