Courts give Biden’s student loan handout two victories

CNN reports that last week, the U.S. Supreme Court and a federal district court handed President Joe Biden two initial legal victories with regard to his student loan handout. 

The legal battles, however, continue.

Background

At issue here is Biden’s plan, which he is trying to carry out through executive action alone, to cancel up to $10,000 per federal student loan borrower – or up to $20,000 if the borrower received a Pell Grant. To qualify, a borrower needs to make less than $125,000 if single or less than $250,000 if married.

The Biden administration just started accepting applications last week, and, thus far, it has received over 22 million. Biden’s student loan handout, however, is facing a number of legal challenges. And, now, Biden has received two initial legal victories.

SCOTUS says no

Biden has already received one victory from the U.S. Supreme Court.

Justice Amy Coney Barrett, who oversees the Wisconsin area, has turned down an emergency request from the Brown County Taxpayers Association of Wisconsin, which was looking to stop Biden’s student loan handout from taking effect while its legality is being litigated.

This, however, doesn’t mean that the justices have given Biden’s student loan handout their approval – they didn’t rule on the merits. It just means that they weren’t willing to grant this particular emergency relief.

District court dismissal

Another legal challenge to Biden’s student loan handout comes from six Republican-led states. And, here too, Biden has received an initial legal victory.

A Missouri district court dismissed the lawsuit on technical grounds, for lack of standing.

The Republicans, though, have responded with an appeal that they filed with the Eighth Circuit Court of Appeals. And, the appellate court has actually granted a stay which will stop Biden’s student loan handout from taking effect while the court considers the Republicans’ appeal.

Biden presses forward

Despite the stay, the Biden administration has made it clear that it will continue preparing to enact its student loan handout.

White House Press Secretary Karine Jean-Pierre put out a statement encouraging qualified borrowers to continue applying, saying, “we will continue to move full speed ahead in our preparations in compliance with this order.”

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