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 October 26, 2022

Eighth Circuit Court of Appeals issues temporary block of Joe Biden's student debt forgiveness plan

President Joe Biden attempted to buy votes with a student loan forgiveness program just ahead of the midterm elections. However, a federal appeals court had a problem with that.

The Eighth Circuit Court of Appeals has temporarily blocked Biden's plan to forgive up to $20,000 in student loan debt, the Western Journal reported. The decision Friday came after six states challenged the administration.

Biden's plan would have erased $10,000 in student loan debt to borrowers who were making $125,000 or less annually. For married couples, the threshold was $250,000, with up to $20,000 in loan forgiveness.

The president used a 2003 law that gave him the ability to forgive loans in the event of a national crisis. Biden used COVID-19 as his excuse, and the states contested that assertion in their lawsuit.

Those that filed the lawsuit -- South Carolina, Arkansas, Kansas, Iowa, Missouri, and Nebraska -- believed Biden should have sought congressional approval. They contended he violated the U.S. Constitution by unilaterally canceling the debt.

Moreover, the plaintiff states argued that such a program is economically damaging, both to the companies that issued the debt and the states that invest in them. A lower court rejected their claims Thursday that would have established standing, prompting the appeal.

The appeal granted Friday was rushed because of the time element and nature of the forgiveness program. The states argued that once the debts were canceled for the borrowers, there would be no way to reverse that decision should a court rule in their favor.

"We are pleased the temporary stay has been granted," Nebraska Attorney General Doug Peterson said of the decision. "It's very important that the legal issues involving presidential power be analyzed by the court before transferring over $400 billion in debt to American taxpayers."

The White House was quick to point out that the decision doesn't mean the proposal is dead. "The order does not reverse the trial court's dismissal of the case, or suggest that the case has merit," White House press secretary Karine Jean-Pierre said in a statement, NPR reported.

"It merely prevents debt from being discharged until the court makes a decision," she added. Education Secretary Miguel Cardona also made it clear that the administration was still proceeding with its plan in the hopes of an eventual victory.

"We are moving full speed ahead to be ready to deliver relief to borrowers," Cordona said. "Today's temporary decision does not stop the Biden Administration's efforts to provide borrowers the opportunity to apply for debt relief, nor does it prevent us from reviewing the millions of applications we have received," he said.

Allowing borrowers to walk away from their debt is simply unethical, especially considering the income requirements. However, Democrats are in trouble and need to buy the votes of young college-educated liberals.

Written By:
Christine Favocci

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