President Joe Biden has attempted a transfer of wealth from taxpayers to student loan borrowers to score political points. An appeals court has thwarted that plan.
Despite Biden's claim that the courts were on his "side," a federal appeals court blocked his student loan forgiveness plan Friday, Breitbart reported. Six Republican-led states had petitioned the U.S. District Court for the Eastern District of Missouri on the basis that it was unlawfully done.
In a clear case of political pandering, Biden had ordered Miguel Cardona, Education Secretary, to forgive as much as $400 billion of student debt for borrowers who willingly and knowingly took out those loans. However, he did so by using a student loan-adjustment law that wasn't designed for wealth transfer.
If eventually approved, this move would be the most significant transfer of wealth in the history of the U.S. Many see it as a transparent effort to solidify the college-aged voting bloc.
Initially, the lower court dismissed the lawsuit Thursday, claiming that the plaintiffs had no legal standing. This led Biden to take a victory lap in the media Friday.
"You know, they've been fighting us in the courts," he said. "But just yesterday, a state court and the Supreme Court said, 'No, we're on Biden's side,'" the president claimed.
However, in an unusual move, the U.S. Court of Appeals for the Eighth Circuit issued an administrative stay effectively blocking the beleaguered program. The administration had already rolled out its website to process the claims suggesting that the court's swift action was necessary to mitigate the potential damage such a handout would quickly cause.
Although the rules on student loans are arguably unfair -- they can never be discharged in bankruptcy, for example -- it doesn't excuse the administration's move to make others pay for loans people willingly took out. Biden was looking to buy votes with taxpayer dollars, and the court recognized that was not acceptable.