Although Biden said he wants to push through with his student loan handout… many conservatives are against the idea.
They argue that it is unfair to those who have already paid off their loans. Moreover, it will only encourage more people to take out loans they can’t afford.
Biden’s Student Loan Handout Struck Down by Texas Federal Judge
A federal judge in Texas struck down Biden’s student loan handout in a ruling. Biden’s plan aims to cancel up to:
- $20,000 in student loan debt for Pell Grant recipients in college
- $10,000 for others who borrowed using federal student loans
US District Judge Mark 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 US.”
Pittman added, “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… The Court is not blind to the current political division in our country. 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.”
Elaine Parker, President of the Job Creators Network Foundation, reacted to the ruling…
Parker said, “The court has correctly ruled in favor of our motion and deemed the Biden student loan program illegal. The judge criticized the Biden Administration program… calling it ‘one of the largest exercises of legislative power without congressional authority in the history of the United States.’ This ruling protects the rule of law which requires all Americans to have their voices heard by their federal government.”
She added, “This attempted illegal student loan bailout would have done nothing to address the root cause of unaffordable tuition… which are greedy and bloated colleges that raise tuition far more than inflation year after year… while sitting on $700 billion in endowments. We hope the court’s decision today will lay the groundwork for real solutions to the student loan crisis.”
There is no logical reason for student loan forgiveness. We already spend trillions of dollars on:
- Subsidizing education through grants
- Subsided low rates
- Subsidized repayment plans based on income, tax credits, and tax deductions
Let’s be clear, there has never been a plan to cancel the debt. The plan has always been to transfer the debt to people that didn’t get the degree and didn’t agree to pay for it.
Biden Administration Determined to Push Through the Student Loan Handout
Biden’s plan is set to cost taxpayers over $400 billion. Moreover, it has faced legal challenges from states and advocacy groups since its announcement.
The program is currently blocked as a result of separate rulings by:
- A St. Louis-based federal appeals court
- A Texas-based federal judge
Right now, the US Supreme Court is being asked to preserve Biden’s program.
The DOJ claims that stalling the program could put Americans in financial difficulty. Payments on student loans are expected to resume in January after years of a pandemic-related grace period.
In reality, Biden’s inflation is putting the entire economy in peril. They shouldn’t have gotten the loan if they couldn’t afford to pay it back.
