BIDEN BLOCKED: U.S. appeals court grants motion to temporarily block student loan bailout
President Biden’s student loan bailout was blocked by the 8th U.S. Circuit Court of Appeals in a motion granted on Friday, according to reports.
The temporary block is a victory for Republican and conservative groups that have argued that the student loan bailout is illegal and should be stopped. The appeals court ruled in favor of six Republican-led states, which “requested that Biden’s handout plan is halted while the court works through its request for an injunction,” according to Fox News.
The student loan plan would cancel out $20,000 in student loan debt for Pell Grant recipients in college. It would also cancel up to $10,000 for others who borrowed using federal student loans, stated Biden officials. Reports state that qualifications for the handout include having an adjusted gross income of less than $125,000 individually, and less than $250,000 if married.
The six Republican state case against Biden isn’t the only lawsuit targeting student loan bailouts. Job Creators Network Foundation (JCNF) Legal Action Fund (LAF) also filed a lawsuit to block the administration’s illegal student loan bailout earlier in the month.
The JCN lawsuit argues that “the bailout violates the Administrative Procedure Act’s notice-and-comment procedures. It features two plaintiffs who have been harmed by this arbitrary executive overreach. It calls on the court to stop this counterproductive, inflationary, and unfair action from taking effect,” states JCN, which is one of five lawsuits targeting the Biden plan.
“By shifting the burden to taxpayers, including those who didn’t go to college or paid their student loans back, colleges escape responsibility for their actions creating the student loan crisis,” said Elaine Parker, President of Job Creators Network Foundation. “They are given carte blanche to continue their ridiculous pricing. Bailing out this debt only kicks this problem down the road. By blocking this inflationary taxpayer bailout, JCN’s lawsuit can lay the groundwork to actually solve the student debt crisis by holding its college perpetrators accountable.”
You can follow Sara A. Carter on Twitter @SaraCarterDC
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