U.S. judge repeals Biden student loan forgiveness

November 10 (Reuters) – A federal judge in Texas on Thursday ruled that President Joe Biden’s plan to write off hundreds of billions of dollars in student loan debt is illegal and should give victory to conservative opponents of the program . In Fort Worth, former Republican President Donald Trump-nominated Mark Pitman ruled the program in favor of two borrowers backed by conservative advocacy groups, calling the program “an unconstitutional exercise of congressional legislative power.” The St. Louis-based 8th Circuit Court of Appeals blocked six Republican-led states while they were considering a request to ban it as they appealed their dismissal. Biden’s plan is partially or completely ineligible for the proposed loan forgiveness. Plaintiff claimed that he had not followed proper rulemaking procedures and that it was unlawful. Borrowers were supported by the Job Creators Network Foundation, a conservative advocate founded by Bernie Marcus, co-founder of Home Depot (HD.N). The US Justice department immediately moved to appeal the judgment. White House press secretary Karine Jean-Pierre said in a statement that the administration strongly disagreed with the decision: about 26 million Americans have applied for student loan waivers, and the US Department of Education has already approved 16 million requests. Jean-Pierre said the department “will retain the information so that it can expedite remedies if it wins in court.” Biden’s plan has been the subject of several lawsuits from the conservative state Attorney General and the legal community, but plaintiffs before Thursday have struggled to convince the courts. The plan, announced in August, requires debt relief of up to $10,000 for student loan debt for borrowers making less than $125,000 a year and $250,000 for couples. Borrowers who receive Pell Grants to benefit low-income college students can get up to $20,000 in debt relief. Over 40 million people were entitled to benefits. Because the program is “one of the largest non-congressional legislative exercises in US history.” Pitman wrote the HEROES Act. It provided loan assistance to the military and the Biden administration relied on the measure. To enact a relief plan – the $400 billion student loan relief program was not approved. “In this country, we are not ruled by an almighty executive with a pen and a phone,” Pittman wrote. Elaine Parker, president of the Job Creators Network Foundation, said in her statement, “Instead, we are governed by a constitution that provides for three separate and independent government agencies.” Let the federal government hear their voices.” Report by Nate Raymond in Boston; editorial by Sandra Maler, Rosalba O’Brien and Kenneth MaxwellOur Standard: The Thomson Reuters Trust Principle. Nate RaymondThomson ReutersNate Raymond discusses federal justice and litigation To report, he may be contacted at nate.raymond@thomsonreuters.com.
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