Court halts Biden’s student loan handout

Fox Business reports that a federal court has just temporarily blocked President Joe Biden’s student loan handout. 

At issue here is Biden’s plan to cancel up to $10,000 in federal student loan debt per borrower or up to $20,000 for borrowers who are Pell Grant recipients. Borrowers, to qualify, have to be making less than $125,000 per year if single or less than $250,000 per year if married.

Biden is attempting to put this plan – which is estimated to cost in the neighborhood of $500 billion – into effect using executive action alone.

The plan has received a ton of pushback, including from many individuals who align with Biden’s own Democratic Party.

The lawsuit

Six Republican-led states have filed a lawsuit challenging the legality of Biden’s student loan handout. The states include Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina.

Initially, a Missouri district court dismissed the lawsuit for lack of standing. The Republicans responded by filing a notice of appeal to the Eighth U.S. Circuit Court of Appeals.

The Eighth Circuit responded by issuing a stay stopping Biden’s student loan handout from taking effect while the court considers the Republicans’ appeal.

According to some legal commentators, this suggests that there is a likelihood that the court is going to deem Biden’s student loan handout illegal. But, this remains to be seen.

The White House responds

Despite the stay issued by the appellate court, White House Press Secretary Karine Jean-Pierre said that the Biden administration is going to move “full speed ahead” with its preparations to put the student loan handout into effect.

“We will continue to move full speed ahead in our preparations in compliance with this order, “Jean-Pierre said. “And, the Administration will continue to fight Republican officials suing to block our efforts to provide relief to working families.”

Jean-Pierre encouraged qualified borrowers to keep applying for debt cancellation, noting that the Circuit Court’s stay does not prevent borrowers from applying and that it does not stop the Biden administration from reviewing applications and preparing to cancel the debt.

This all comes after the White House just started accepting online applications for the debt cancellation program. It is estimated that 22 million Americans have already applied.

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