Federal Appeals Court Blocks Joe Biden’s Student Loan Bailout Program
“We are assessing the impacts of this ruling and will be in touch directly with borrowers with any impacts that affect them.”
Yet another court has stepped in to block Joe Biden’s unconstitutional and possibly illegal college student vote-buying program. It’s amazing that Biden has gotten away with this for as long as he has, considering the fact that even the U.S. Supreme Court told him he couldn’t do it.
Biden knows he needs this for the Bernie wing of his party.
Reuters reports:
US appeals court blocks all of Biden student debt relief plan
A federal appeals court on Thursday blocked President Joe Biden’s administration from continuing to implement a new student debt relief plan designed to lower monthly payments for millions of Americans.
The St. Louis-based 8th U.S. Circuit Court of Appeals granted a request, opens new tab by seven Republican-led states to put on hold parts of the U.S. Department of Education’s debt relief plan that had not already been blocked by a lower-court judge.
That ruling last month by U.S. District Judge John Ross in St. Louis had blocked the department from granting further loan forgiveness under the administration’s Saving on a Valuable Education (SAVE) Plan but had not blocked all of the plan.
That plan provides more generous terms than past income-based repayment plans, lowering monthly payments for eligible borrowers and allowing those whose original principal balances were $12,000 or less to have their debt forgiven after 10 years.
State attorneys general led by Missouri Attorney General Andrew Bailey subsequently last week asked the 8th Circuit to block the rest of the SAVE Plan. The court did so through a one-page order granting an administrative stay.
Bailey commented on Twitter/X:
JUST IN: The Court granted our emergency motion to BLOCK Joe Biden’s entire illegal student loan plan, which would have saddled working Americans with half-a-trillion dollars in Ivy League debt.
HUGE win for every American who still believes in paying their own way.
— Attorney General Andrew Bailey (@AGAndrewBailey) July 18, 2024
More from the FOX Business Network:
An Education Department spokesperson told FOX Business, “We are assessing the impacts of this ruling and will be in touch directly with borrowers with any impacts that affect them.”
“Our Administration will continue to aggressively defend the SAVE Plan – which has been helping over 8 million borrowers access lower monthly payments, including 4.5 million borrowers who have had a zero dollar payment each month,” the statement continued. “And, we won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments.”
Education Secretary Miguel Cardona released a statement Thursday night saying the ruling could have “devastating consequences for millions of student loan borrowers crushed by unaffordable payments if it remains in effect.”
Biden’s plan is nothing more than a debt transfer.
87% of American adults don’t have student loan debt, so President Biden has decided he’ll force them to pay off other people’s loans.
He is breaking the law in order to carry out his debt transfer scheme that has already cost every American household over $3,000. pic.twitter.com/7ZkCIhUB0v
— Heritage Foundation (@Heritage) July 18, 2024
People who didn’t go to college should not be forced to pay the debts of those who did.
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Comments
The American marxist has a lot of losing to process past couple of weeks
The threat an unaccountable covert cabal conspirator executing the functions of POTUS is an existential threat to the survival of the Republic
The mana from Trump’s blood sacrifice shows no signs of fading yet.
His juju is powerful indeed.
35 years of skilled trade experience got me further in life than my failed attempt at university.
The inimitable Mike Rowe has been advocating for student training in skilled trades over nonsensical, frivolous and expensive university concentrations/degrees, for a long time.
And, LI’s resident human grizzly has been advocating for major companies to consider forming up apprenticeship programs for virtually everything, but especially engineering.
I’m old enough to remember federal tax returns being seized to pay off student loans.
Refunds. A tax return is a form.
[/pedant]
And wage garnishments, collection calls.
Thank goodness the administration will not directly bother borrowers about impacts that do not affect them.
Most people are finally admitting the truth about shifting the debt burden from willing Students borrowers to the rest of the unwilling pubic. Now if we could get folks to view the rest of federal expenditures, particularly the amounts above revenues, the same way. Every dollar borrowed and spent each year, often on neocon forever wars and boondoggle domestic grift/graft, adds another few links to the shackles of debt we are unfairly and selfishly handcuffing our Children and Grandchildren with.
Indeed. Those are a transfer of debt from one generation to another — increasingly to a generation not yet even born.
Dhimmi-crats flippantly and lawlessly handing out billions of taxpayer/creditor money to the leeches and parasites who comprise much of their shiftless voter base, to buy their votes; nothing new under the Sun.
This is what happens when a country’s perceived prosperity greatly exceeds its actual prosperity. People start expecting money for nothin’ and their chicks for free.
It’s more complicated and insidious than your description. See the annual agriculture bill aka Farm Bill. The annual Congressional authorization and appropriation for the USDA includes ‘welfare’ such as food stamps but corporate welfare in the form of limitations on which farmers can plant some crops, who gets subsidies under what conditions….all sorts of shenanigans. Nearly every authorization or appropriation bill is a blend of priorities purposely designated by the uni party DC establishment and hordes of special interest groups to ensure everyone’s piece of the taxpayer pie is funded.
It’s an utterly depressing state of affairs, to be sure. No household, business or non-profit organization in the U.S. aspires to emulate the level of willful, flippant and brazen disregard for fiscal thrift, prudence and responsibility that too many municipalities, state governments and the federal government, at-large, practice with gleeful abandon.
The Farm Bill is also used by the Left to decry ‘corporate welfare’ to red state farm families, even though the vast majority of funding in the bill is food stamps and school lunches. Crop support payments (not ‘subsidies’ for the most part) are created to stop or slow the boom/bust/bankruptcy tendency of farming. If farmers plant a lot of wheat and it’s a good year for wheat, the price can drop so far its not worth harvesting and the farmer goes bankrupt. Same if a drought hits that corner of the country and the crop is ruined. (hence, crop insurance) Now I’ll admit that’s the *intent* and in some cases reality tapdances on intent, but it’s been better than the alternative.
We need to stop giving college loans for college degrees in fields that don’t earn enough to pay them back.
I understand the sentiment of your idea. I lived at home and worked thru college for my EE degree because I didn’t want to go into debt. But I prefer a free country. Not allowing someone to take out a loan to party for 4 years and end up with a journalism, political science, general studies, …. degree just means that later on in life they will go upside-down buying a shiny car they can’t afford and drive it every year to their time-share condo that saves them so much money.
Of course… but it’s harder for the fedguv to bail out THAT debt with your money.
Of course, back in the day, student loans weren’t fedguv money to begin with… except for the National Defense loans, which were strictly enforced and forgiven only if you went into the military or the educational fields for a minimum amount of time.
Once again, to the incoming Congress: Griggs v. Duke can be undone by ordinary legislation.
They’ve been using emails to people with student loans to campaign quite aggressively. I got one the other day that made it clear that the only thing standing in the way of the SAVE plan is the evil of Republicans.
I was offended at the improper use of official communications but apparently I’m in the minority on that.
No, you are not. Every honest student that paid off their loans will be ticked off by this.
Grab an image of those emails and share everywhere.
“…including 4.5 million borrowers who have had a zero dollar payment each month.”
Not mentioned, of course, are the millions of TAXPAYERS who are the ones paying off the loans.
“opens new tab”
You probably want to edit that out…
It’s Reuters, I’ll
LOLallow it.From my own experience working at a land-grant university, a significant percentage of students use their college loans to fund 4 years of teenage fantasy life.
No parents, to bother them, binge drinking, casual sex at every opportunity; just a long and drawn out senior year in high school. These students take the easy majors because their purpose is not to prepare for adult life but to continue their childhood.
Naturally, these students end up as baristas and Walmart stock boys and TikTok influencers.. Biden wants us to shoulder the burden of their extremely expensive lifestyle loans because after all, its not HIS money.
I appear to have missed all that when I was a teenager.
Where do I sign up for a student loan?
You are, of course, correct but this is only part of the problem.
Many of the ones that succeed in college also live a lavish lifestyle with meals catered to them every day and night, free top notch workout facilities, dozens of entertainment opportunities, etc. They then hit the real world and throw a hissy fit when they don’t start off making six figures to support that lavish lifestyle in the real world. This usually leads to complaints about how unfair it all is. They’ve been spoiled by parents for so long before college that they’ve never known sacrifice, fiscal self control, and thriftiness their entire lives.
Good- stop printing money.
Next move I’d make is to double (even triple) allowable retirement contributions for the next 5 years.
Along with strengthen cash positions in banks thus taking money out of circulation.
20 other moves like this would bring inflation into check.
You are the Mayor of a town.
Your brother in law owes the town $40,000.
You forgive the debt.
Judge says no.
Your BiN says I have a receipt saying balance is Zero so town can’t collect.
Malfeasance? Bribery?
Oh, the Mayor has dementia, he can do anything and there are no consequences.
Now multiply that problem by 20,000,000, as illegal aliens wave papers in your face, shouting “Refugee! Sanctuary!”
Yes, Biden’s plan is essentially a debt transfer: from those likely to vote for him, to regular taxpayers who are less likely to vote for him.
People who didn’t go to college should not be forced to pay the debts of those who did.
People who made better choices, be they working class or college graduates, shouldn’t be forced to pay the debts of morons who chose shit majors and then cry about not being able to pay back thousands of dollars because the only job they’re (barely) qualified for is flipping burgers.
But that’s just a single one of countless jazz riffs on the basic theme of Marxist socialism.
‘devastating consequences for millions of student loan borrowers crushed by unaffordable payments if it remains in effect.’
So what about the crushing taxes for millions of Americans if their scheme is allowed? Greedy government? No, there are only greedy corporations and slum lords.
But they don’t care about the rest. The press loves the student borrowers, the press probably have student loan debt themselves, they certainly went to college.
Joe Biden’s unconstitutional and possibly illegal college student vote-buying program.
If it is unconstitutional wouldn’t that automatically make it illegal?
I think the mssaging here was:
It’s unconstitutional because the fedguv doesn’t have delegated authority to do it.
It’s illegal because election or general finance laws would forbid the particular mechanism in use here even for perfectly constitutional debt payments.
Good to see R’s being aggressive in court, may it continue and increase. We’re not up to the levels of the Trump and J6 prosecutions, so we have more to learn.
Yes I absolutely want to give them back a triple dose of their own medicine. This will take a while. And unlike when conservatives are suffering, we’ll hear all the horror stories of Dems’ lives going sour and court cases ruining them endlessly. Use it as fuel to do more and more!
Time to just use common sense and agree that it’s a bad idea.
Bad for the borrower, bad for the lender, bad for the country.
No, it didn’t, and no matter how many times you claim it did, it still didn’t.
The Supreme Court told him the specific statute he had been relying on for his original vast program didn’t authorize it. So he stopped that program, and he told his legal staff to go looking for other statutes that could be used for similar programs, even if only more limited ones. That’s not defiance, it’s compliance. That is what compliance with a court decision looks like.
If this statute doesn’t authorize it either, then he’ll just go looking for other ones. No court has told him, or even can tell him, that there are no statutes in existence that authorize any loan forgiveness program whatsoever.
It’s exactly the same as when a court told Trump his so-called “moslem ban” was illegal for reasons a, b, and c, so he had his people come up with a ban that didn’t have those flaws, and tried again. And when that one was struck down he came up with a third one, that addressed all the objections to the previous ones. That is how it works, and how it’s supposed to work.