President Joe Biden's administration is still approving student loan forgiveness requests despite ongoing legal challenges that have put a hold on the handout, the Daily Wire reported. Some borrowers have been promised up to $20,000 in debt relief.
Prior to the November midterm elections, Biden had proposed a handout that would forgive $10,000 in student loan debt for borrowers earning under $125,000 and $20,000 for those who had received a Pell Grant. Six Republican attorneys general challenged the program.
"In addition to being economically unwise and downright unfair, the Biden Administration’s Mass Debt Cancellation is yet another example in a long line of unlawful regulatory actions," the legal filing stated. "No statute permits President Biden to unilaterally relieve millions of individuals from their obligation to pay loans they voluntarily assumed."
The legal filing further argued that Biden violated the Separations of power and the Administrative Procedure Act. A district court claimed the states didn't have the standing to sue.
Biden had attempted to use the Higher Education Relief Opportunities for Students Act to provide a buy off borrowers just in time for election season. Under the 2003 legislation, the Education Secretary is granted the authority to cancel or amend student debt.
It's meant to be used only in times of disaster, war, or national emergency. Unfortunately for the administration, Biden declared the COVID-19 pandemic over negating even that narrow circumstance.
In a ruling last week, U.S. Court of Appeals for the Eighth Circuit agreed to block the program, reversing the lower court's decision. The administration was ordered to grant no more loan forgiveness while the issue was sorted out.
Yet some who already applied through the official website received emails Saturday from Education Secretary Miguel Cardona confirming that they were "eligible for student loan relief" and approved. "We have sent this approval on to your loan servicer," the message read.
"You do not need to take any further action," it stated. Cardona even confirmed in a social media post that the program was going forward.
"Beginning today, applicants and others seeking relief through the Biden-Harris Administration's Student Debt Relief Plan will begin receiving updates," Cardona tweeted from his official account Saturday. "Don’t worry if you don’t get an email today - more are coming."
The matter may go to the U.S. Supreme Court before it is settled. If the handout is approved, the Congressional Budget Office estimates it will come with a price tag of $400 billion dollars.
There's no reason to grant such sweeping loan forgiveness except to score political points as it is. However, it's inexcusable to allow borrowers to continue to apply when a court has ruled it unlawful.