Another Federal Court Rules Biden's Student Loan Giveaway is Illegal

Another Federal Court Rules Biden's Student Loan Giveaway is Illegal

A federal judge in Texas appointed by then-President Donald Trump ripped his predecessor, Joe Biden, in a ruling against the administration’s student loan giveaway.

U.S. District Judge Mark Pittman ruled Thursday in favor of the Job Creators Network Foundation, which filed suit against the administration alleging that the loan bailout was illegal.

The group filed the suit last month on behalf of one person who only qualified partially for the giveaway and another person who was not eligible at all.

“This case involves the question of whether Congress—through the HEROES Act—gave the Secretary authority to implement a Program that provides debt forgiveness to millions of student-loan borrowers, totaling over $400 billion,” Pittman wrote.

“Whether the Program constitutes good public policy is not the role of this Court to determine. Still, no one can plausibly deny that 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,” his ruling noted further.

“In this country, we are not ruled by an all-powerful executive with a pen and a phone,” Pittman continued. “Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government.

“As President James Madison warned, ‘[t]he accumulation of all powers, legislative, executive, and judiciary, in the same hands, whether of one, a few, or many, and whether hereditary, self-appointed, or elective, may justly be pronounced the very definition of tyranny.’ THE FEDERALIST NO. 47,” Pittman’s ruling continued.

“The Court is not blind to the current political division in our country,” he concluded. “But it is fundamental to the survival of our Republic that the separation of powers as outlined in our Constitution be preserved. And having interpreted the HEROES Act, the Court holds that it does not provide ‘clear congressional authorization’ for the Program proposed by the Secretary.”

The controversial student loan giveaway would cancel as much as $10,000 in debt for those who earn less than $125,000 a year, or less than $250,000 for married couples.

Last month, a federal appeals court blocked Biden’s executive order wiping away some student loan debt after a Supreme Court justice earlier in the week refused to take a similar case.

The U.S. Court of Appeals for the 8th Circuit in St. Louis ordered the administration to pause the program while several lawsuits challenging Biden’s order wind their way through the courts.

Plaintiffs argue that under the Constitution, only Congress can authorize such debt cancellation, not the Executive Branch.

“The court granted an administrative stay while it considers a request for an injunction from six states — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — that are seeking to block Biden’s program,” the Daily Wire reported.

The immediately controversial relief plan cancels up to $10,000 of student debt for individuals who make less than $125,000 per year, or less than $250,000 for married couples.

“Our student loan plan lowers costs for Americans as they recover from the pandemic to give everybody a little more breathing room,” Biden said in a speech on Friday. “Republican members of Congress, Republican governors are doing everything they can to deny this relief. Their outrage is wrong and it’s hypocritical.”

Legal experts have countered by arguing that Biden’s use of the 2003 HEROES Act, meant to assist Iraq war veterans, as justification for the loan relief is “flagrantly illegal.”

“Nixing $10,000 of student loan debt per borrower would cost $298 billion in 2022 and a total of $329 billion by 2031 if the policy is renewed each year, according to a nonpartisan analysis from the University of Pennsylvania’s Wharton School,” the Daily Wire continued.

“A report from the Brookings Institution observed that one-third of student debt is owed by the wealthiest 20% of households, while only 8% is owned by the bottom 20% — likely because graduate degrees are often necessary for the most lucrative professions,” the outlet added.


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