By
Christine Favocci
|
December 4, 2022
|
11:45 pm

Joe Biden's student loan forgiveness plan rejected by Fifth Circuit Court of Appeals

President Joe Biden's student loan forgiveness handout was rejected once again after the U.S. Court of Appeals Fifth Circuit refused to overturn a lower court's stay, Breitbart reported. The program would have transferred $400 billion worth of debt from the borrowers who benefited to the taxpayers.

The program has been doomed from the start. Almost immediately after it was announced, the business advocacy group Job Creators Network sued the government on the grounds that Biden did not have the authority to implement it.

Arguments were led by Karen Harned, the organization's litigation chief. Northern District of Texas Judge Mark Pittman found in favor of the plaintiffs and successfully thwarted the program.

Pittman ruled that neither Education Secretary Miguel Cardona nor Biden had the authority to tinker with student loan payments. He reiterated House Speaker Nancy Pelosi's rationale that the nation isn't "ruled by an all-powerful executive with a pen and a phone."

The Department of Justice's petition for a stay on the lower court's ruling would not have resurrected the plan, however. Had Wednesday's ruling gone in the administration's favor, the administration would have needed the Eight Circuit's decision to block the program overturned as well.

Now, the U.S. Supreme Court announced Thursday that it would take up the case, Fox Business News reported. Arguments in front of the high court will begin in February.

It's unlikely that any decision will come before June, meaning the program is on hold until then. That is also the same time when the current moratorium on loan repayments sunsets as well, making this a case to be watched.

Under Biden's forgiveness plan, single borrowers who earn less than $125,000 or $250,000 combined would have been eligible for $10,000 in loan forgiveness. Those who also had qualified for Pell Grants would have been given another $10,000 raising the total possible handout to a cool $20,000.

After the student loan forgiveness plan was announced, the government started taking applications and approving borrowers. More than 16 million were approved of the 24 million that applied.

The Department of Education had stopped taking applications after losing its first battles in court, however. The Texas decision is the second to make halting the program altogether one of its stipulations.

Although the Biden administration sells it as forgiveness, the program actually amounts to a wealth transfer. The non-partisan Congressional Budget Office has estimated a $400 billion price tag over the next 30 years.

The president sought to buy off voters with this handout shortly before the midterm election. According to Business Insider, that strategy likely helped bring enough young people to the polls to stop the red wave many were predicting.

This cynical strategy was successful, but the fact that it worked opens the broader question about the responsibilities of student loan debt. The people who take out the loans do so with the full knowledge that they'll be asked to repay them.

However, leftist politicians have used loan forgiveness as a carrot on a stick to keep young people voting Democratic. This is not only cynical politics, but it's also harmful to the integrity of the nation and its future.

Written By:
Christine Favocci

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