The Biden administration is proposing a plan that would lower federal student loan payments for millions of Americans, including a pause on student loan payments for those making under $30,600 per year.
The proposed changes would be based on income, with the pause on student loan payments increasing from the current $24,000 to the new level.
Other borrowers could receive a lower payment amount each month, with undergraduate borrowers above that threshold paying no more than 5% of income instead of the current 10%. Both undergraduate and graduate debt borrowers would pay between 5% and 10% of their income based on a weighted average of their balances.
“Today, we’re making a new promise to today’s borrowers and for generations to come: Your student loan payments will be affordable,” Secretary of Education Miguel Cardona <a href="https://www.cnn.com/2023/01/10/politics/student-loans-affordable-payments/index.html" target="_blank" rel="noopener">told</a> reporters Monday evening, according to CNN. “You won’t be buried under an avalanche of student interest, and you won’t be saddled with a lifetime of debt.”
Roughly eight million people are currently enrolled in income-based student loan repayment plans, CNN reported. The plans extend repayment periods from 10 years to up to 25 years with a promise to forgive the remaining balance at the end of the period.
Borrowers must enroll and submit annual information about income and family size to determine monthly payments and remain eligible. Many borrowers have complained that the monthly loan payment amounts are unbearable, especially during the COVID-19 pandemic.
The new plan would also expand the income amount that applies to families. A borrower in a family of four making less than $62,400 per year would not be required to make monthly payments on their loans under the new proposal.
The proposal could also decrease the number of years necessary to receive loan forgiveness. Instead of 20 or 25 years, a borrower could receive student loan forgiveness after just 10 years if they borrowed $12,000 or less, The Washington Post <a href="https://www.washingtonpost.com/education/2023/01/10/biden-student-loan-repayment-plan-details/" target="_blank" rel="noopener">noted</a>.
Several exclusions and limitations would apply under the new policy. For example, Parent Plus loans are excluded from the program. Many of the policies also only apply to undergraduate loans.
President Joe Biden moved to provide student loan forgiveness last year for millions of borrowers ahead of the 2022 midterms. The executive action has since been tied up in a court battle that the Supreme Court agreed in December to hear in 2023.
As The Daily Wire <a href="https://www.dailywire.com/news/biden-administration-dealt-another-blow-on-student-loan-forgiveness" target="_blank" rel="noopener">reported</a> in November, U.S. District Judge Mark Pittman <a href="https://www.dailywire.com/news/breaking-federal-court-declares-bidens-student-loan-bailout-is-illegal" target="_blank" rel="noopener">ruled</a> against the student loan forgiveness plan, saying that it was illegal.
“In this country, we are not ruled by an all-powerful executive with a pen and a phone,” Pittman wrote. “Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government.”
Under Biden’s program, over 26 million borrowers have applied to the Department of Education for forgiveness and could receive up to $10,000 in student debt relief if they make less than $125,000 or $250,000 per household.
The nonpartisan <a href="https://www.cbo.gov/system/files/2022-09/58494-Student-Loans.pdf" target="_blank" rel="noopener">Congressional Budget Office</a> estimated that Biden’s student loan forgiveness effort would cost around $400 billion. The Biden administration <a href="https://www.ed.gov/news/press-releases/us-department-education-estimate-biden-harris-student-debt-relief-cost-average-30-billion-annually-over-next-decade" target="_blank" rel="noopener">claimed</a> it would cost approximately $300 billion.

college graduation

Biden Admin Unveils Student Loan Payment Reduction Proposal As Debt Cancelation Stalls In Court

Biden Admin Pitches Student Loan Payment Reduction As Debt Cancellation Stalls In Court

Biden Administration

Department of Education

Education

Executive

Politics

Student Loan Cancellation

Student Loans

The U.S. <a href="https://www.dailywire.com/topic/supreme-court" target="_blank" rel="noopener">Supreme Court</a> agreed Monday to hold arguments in a second case against the Biden administration’s student loan forgiveness program from a small business organization challenging the constitutionality of canceling billions of dollars in student loan debt.
The nation&#8217;s highest court agreed to hear the case after a federal judge in Texas ruled last month that President Joe Biden&#8217;s student loan bailout is illegal in response to a lawsuit filed by the Job Creators Network Foundation, which alleged that Biden&#8217;s student loan bailout violated federal procedures.
Elaine Parker, president of the Job Creators Network Foundation, told The Daily Wire in a news release that the network is &#8220;pleased that the Supreme Court has decided to hear our case.&#8221;
&#8220;If this illegal program isn&#8217;t stopped, it will give the executive branch a blank check, not only for this president, but every future president without any input from Congress or any public participation,&#8221; Parker said.
Under Biden&#8217;s program, about 26 million borrowers have applied to the Department of Education for forgiveness and could receive up to $10,000 in student debt relief if they make less than $125,000 or $250,000 per household.
The nonpartisan <a href="https://www.cbo.gov/system/files/2022-09/58494-Student-Loans.pdf" target="_blank" rel="noopener">Congressional Budget Office</a> estimated that Biden&#8217;s plan would cost around $400 billion, while the Biden administration <a href="https://www.ed.gov/news/press-releases/us-department-education-estimate-biden-harris-student-debt-relief-cost-average-30-billion-annually-over-next-decade" target="_blank" rel="noopener">claims</a> it would cost approximately $300 billion.
One U.S. district court judge in Texas took a sledgehammer to President Biden&#8217;s attempt to bail out certain student loans.
Judge Mark T. Pittman offered three key reasons why the attempt came as an egregious mistake, noting the law cited by the Education Department for justification of the bailout — the HEROES Act — does not stipulate that it can be applied to student loans, using COVID as a means to justify the program did not accurately reflect why it is essential, and the executive does not have proper authority on the matter.
Parker, with the small business organization, argued that the Biden administration has no emergency authority under the HEROES Act to cancel hundreds of billions of dollars in student loan debts.
&#8220;Congress should instead address the root of the student loan problem: unaccountable colleges that rapidly raise tuition while sitting on $700 billion in endowments,&#8221; Parker added.
Network officials filed the lawsuit last month on behalf of two borrowers who did not qualify or were ineligible to receive the full amount that the program offered.
Justice Samuel Alito said, as reported by <a href="https://justthenews.com/government/courts-law/supreme-court-take-small-business-groups-case-against-student-loan?utm_source=tw&amp;utm_medium=social&amp;utm_campaign=twjtn" target="_blank" rel="noopener">Just the News</a>, that SCOTUS will examine if the Department of Education&#8217;s forgiveness program was &#8220;statutorily authorized and was adopted in a procedurally proper manner.&#8221;
Solicitor General Elizabeth Prelogar had urged the justices, as reported by <a href="https://www.cnn.com/2022/12/12/politics/supreme-court-student-loan-challenge/index.html" target="_blank" rel="noopener">CNN</a>, to remove the block on the program and hear oral arguments.
&#8220;This is the second of two cases in which lower courts have entered nationwide orders blocking the Secretary of Education&#8217;s plan to use his statutory authority to provide debt relief to student-loan borrowers affected by the Covid-19 pandemic,&#8221; Prelogar said in court papers.
Biden administration officials were also slapped with a lawsuit last month by six Republican-led states that challenged the program, arguing it poses a threat to their future tax revenues and avoids congressional oversight.
Reuters <a href="https://www.reuters.com/legal/us-supreme-court-takes-up-second-biden-appeal-student-debt-plan-fight-2022-12-12/" target="_blank" rel="noopener">reported</a> that both cases could be heard as early as February 2023.

President Biden Delivers Remarks On The Student Debt Relief Portal Beta Test

Supreme Court To Hear Second Case Challenging Biden Student Loan Forgiveness Program

Courts

U.S.

The <a href="https://www.dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Biden administration</a>’s <a href="https://www.dailywire.com/topic/student-loan-cancellation" target="_blank" rel="noopener">student loan forgiveness plan</a> was pushed back again on Wednesday after an appeals court refused to pause a previous ruling against the policy.
In November, U.S. District Judge Mark Pittman <a href="https://www.dailywire.com/news/breaking-federal-court-declares-bidens-student-loan-bailout-is-illegal" target="_blank" rel="noopener">ruled</a> against the student loan forgiveness plan, saying that it was illegal.
“In this country, we are not ruled by an all-powerful executive with a pen and a phone,” Pittman wrote. “Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government.”
&#8220;We strongly disagree with the District Court&#8217;s ruling on our student debt relief program,&#8221; White House Press Secretary Karine Jean-Pierre <a href="https://www.npr.org/2022/11/10/1135940851/student-debt-relief-biden-blocked-texas-district-court" target="_blank" rel="noopener">said</a> in response at the time. &#8220;The President and this Administration are determined to help working and middle-class Americans get back on their feet, while our opponents — backed by extreme Republican special interests — sued to block millions of Americans from getting much-needed relief.&#8221;
The U.S. Education Department had asked the 5th Circuit Court to put a hold on the previous ruling. It refused to do so on Wednesday, keeping Pittman’s ruling in place as the court issues a broader <a href="https://www.npr.org/2022/12/01/1140070164/student-debt-relief-appeal-rejected" target="_blank" rel="noopener">ruling</a> on the Biden administration’s appeal. The court <a href="https://www.foxnews.com/politics/student-loans-relief-5th-circuit-court-rejects-bidens-latest-plea-reinstate-program" target="_blank" rel="noopener">decided</a> to accelerate the case’s timeline, however, to the “next available” oral argument.
The U.S. Court of Appeals for the 8th Circuit also recently ruled against Biden’s student loan forgiveness plan, putting forward an injunction that halted it. The ruling came after a group of six Republican-led states requested the court pause any debt forgiveness during its court proceedings.
The Biden administration argues that it has the legal authority for its proposal due to the 2003 Higher Education Relief Opportunities for Students Act (<a href="https://www.congress.gov/bill/108th-congress/house-bill/1412/text" target="_blank" rel="noopener">HEROES</a>). The law allows the Education Secretary to get rid of or alter student loan debt in times of war and national emergencies for specific individuals.
Last month, the Biden administration took steps to <a href="https://www.dailywire.com/news/biden-administration-asks-supreme-court-to-allow-student-loan-forgiveness-plan" target="_blank" rel="noopener">ask</a> the Supreme Court to weigh in on the plan and let it resume.
In the filing to the Supreme Court, U.S. Solicitor General Elizabeth B. Prelogar discussed the HEROES Act.
&#8220;Because borrowers who default on their student loans face severe financial consequences &#8212; including wage garnishment, long-term credit damage, and ineligibility for federal benefits &#8212; Congress specifically authorized the Secretary to waive or modify any applicable statutory or regulatory provision as he deems necessary to ensure that borrowers affected by a national emergency are not worse off in relation to their student loans,&#8221; she <a href="https://docs-cdn-prod.news-engineering.aws.wapo.pub/publish_document/7d1b7c7e-5b8b-4ba9-a353-91426075f82a/published/7d1b7c7e-5b8b-4ba9-a353-91426075f82a.pdf" target="_blank" rel="noopener">wrote</a>.
The states involved in the legal case in the 8th Circuit disagree with the use of HEROES.
&#8220;The Act requires a real connection to a national emergency. But the Department’s reliance on the COVID-19 pandemic is a pretext to mask the President’s true goal of fulfilling his campaign promise to erase student-loan debt,&#8221; the states wrote.
&#8220;Hiding the real motive, the agency attempts to connect the Cancellation to the pandemic by citing current economic conditions supposedly caused by COVID-19. But those conditions are not directly attributable to the pandemic, so the Department has failed to adequately link the Cancellation to a national emergency,” they added.
The plan involves giving up to $10,000 in debt cancellation to qualifying student loan borrowers who make under $125,000 as individuals or $250,000 as a household. People who received Pell Grants could receive up to $20,000 in debt cancellation.
Prior to the legal challenges, the Department of Education had <a href="https://www.npr.org/2022/11/10/1135940851/student-debt-relief-biden-blocked-texas-district-court" target="_blank" rel="noopener">greenlit</a> millions of requests for debt relief. The White House <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/11/03/by-the-numbers-millions-of-americans-student-loan-costs-will-rise-dramatically-under-republican-officials-plans/" target="_blank" rel="noopener">announced</a> in November that almost 26 million people had applied and around 16 million applications were set to be approved.
The <a href="https://www.nbcnews.com/politics/congress/bidens-student-loan-cancellation-plan-cost-400b-congressional-budget-o-rcna49478" target="_blank" rel="noopener">nonpartisan</a> Congressional Budget Office <a href="https://www.cbo.gov/system/files/2022-09/58494-Student-Loans.pdf" target="_blank" rel="noopener">estimated</a> that Biden’s student loan forgiveness will <a href="https://www.washingtonpost.com/us-policy/2022/09/26/cbo-student-loan-forgiveness-biden/" target="_blank" rel="noopener">cost</a> around $400 billion. The Biden administration has claimed that it will <a href="https://www.ed.gov/news/press-releases/us-department-education-estimate-biden-harris-student-debt-relief-cost-average-30-billion-annually-over-next-decade" target="_blank" rel="noopener">cost</a> around $300 billion.
<a href="https://www.dailywire.com/author/ryan-saavedra" target="_blank" rel="noopener">Ryan Saavedra</a> contributed to this report.

DD1E1FA4-AA83-49C8-90CD-08BCC32AEFCF_1_201_a

Biden Administration Dealt Another Blow On Student Loan Forgiveness

Biden Administration Dealt Another Blow On Student Loan Forgiveness Plan

President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a> reportedly plans to extend the pause on federal student loan payments through the summer of 2023 as his <a href="https://www.dailywire.com/topic/student-loan-cancellation" target="_blank" rel="noopener">student debt cancellation</a> plan faces legal challenges.
The <a href="https://www.dailywire.com/topic/department-of-education" target="_blank" rel="noopener">Department of Education</a> will soon announce the extension of the freeze, according to a <a href="https://www.cnn.com/2022/11/22/politics/student-loan-repayment-freeze-extended/index.html" target="_blank" rel="noopener">report</a> from CNN. The first payments will be due two months after June 30, unless the Supreme Court greenlights the administration’s debt forgiveness program beforehand. A similar <a href="https://www.bloomberg.com/news/articles/2022-11-22/white-house-to-extend-student-loan-payment-pause-up-to-june-30" target="_blank" rel="noopener">report</a> from Bloomberg quoted multiple unnamed sources.
Former President Donald Trump introduced the pause on federal student loan repayment in March 2020 as a relief measure during the lockdown-induced recession. Trump and Biden had previously extended the pause for a total of seven times, implying that the upcoming freeze will mark the eighth such move, according to a <a href="https://www.forbes.com/sites/adamminsky/2022/11/15/8-signs-biden-may-actually-extend-the-student-loan-pause-again/?sh=4365a63f2226" target="_blank" rel="noopener">report</a> from Forbes.
The previous extension of the pause on federal student loan payments was slated to expire on December 31. A number of reports had predicted that the White House would once again extend the freeze, which comes at a price tag of $5 billion per month, according to an <a href="https://www.crfb.org/blogs/student-loan-pause-could-cost-275-billion" target="_blank" rel="noopener">analysis</a> from the Committee for a Responsible Federal Budget. Extending the pause through the end of 2024 would cost as much as $120 billion, bringing the total cost of the pauses to $275 billion.
Two months ago, however, Biden asserted during an <a href="https://www.dailywire.com/news/biden-shocks-white-house-by-declaring-pandemic-is-over-while-hundreds-of-americans-die-every-day" target="_blank" rel="noopener">interview</a> that the “pandemic is over,” catching many federal health officials by surprise. “If you notice, no one’s wearing masks,” the commander-in-chief said. “Everybody seems to be in pretty good shape. And so I think it’s changing. And I think this is a perfect example of it.”
The student debt cancellation policy, which would <a href="https://www.dailywire.com/news/breaking-biden-announces-details-of-student-loan-cancellation-plan" target="_blank" rel="noopener">eliminate</a> $10,000 in student debt for borrowers earning less than $125,000 per year and $20,000 for borrowers who used Pell Grants, is currently moving through the court system. The program is now <a href="https://www.dailywire.com/news/breaking-federal-court-freezes-bidens-student-loan-bailout" target="_blank" rel="noopener">on hold</a> after a ruling from the Court of Appeals for the Eighth Circuit, which granted standing to a lawsuit from multiple Republican state attorneys general who <a href="https://www.dailywire.com/news/unfair-unconstitutional-and-unwise-two-more-lawsuits-hit-biden-over-student-debt-cancellation" target="_blank" rel="noopener">contended</a> that the White House illegally bypassed Congress while drafting the policy.
Solicitor General Elizabeth Prelogar <a href="https://www.dailywire.com/news/biden-administration-asks-supreme-court-to-allow-student-loan-forgiveness-plan" target="_blank" rel="noopener">asked</a> the Supreme Court last week to rule on whether student debt cancellation can continue. “The Eighth Circuit’s erroneous injunction leaves millions of economically vulnerable borrowers in limbo, uncertain about the size of their debt and unable to make financial decisions with an accurate understanding of their future repayment obligations,” she wrote.
The Department of Education has nevertheless started <a href="https://www.dailywire.com/news/biden-admin-tells-people-they-are-approved-for-student-loan-cancellation-even-as-court-battles-rage" target="_blank" rel="noopener">informing borrowers</a> that they have been approved for debt cancellation. Some applicants received an email from Education Secretary Miguel Cardona saying they were “eligible for loan relief” after a review of their submission. “We have sent this approval on to your loan servicer,” the message said. “You do not need to take any further action.”
The student loan cancellation policy garnered controversy even among allies of the White House. Multiple swing-state Democratic candidates <a href="https://www.dailywire.com/news/vulnerable-democrats-in-swing-states-distance-themselves-from-biden-on-student-debt-cancellation" target="_blank" rel="noopener">distanced themselves</a> from the move during the recent midterm elections, while Lawrence Summers, an economist who served under the Obama and Clinton administrations, <a href="https://www.dailywire.com/news/raises-demand-and-increases-inflation-obamas-top-economist-shreds-biden-plan-for-student-loan-cancellation" target="_blank" rel="noopener">said</a> that the policy “consumes resources that could be better used helping those who did not, for whatever reason, have the chance to attend college.”

Biden Extends Student Loan Pause Again After Declaring ‘Pandemic Is Over’

Biden Extends Student Loan Cancellation For The Eighth Consecutive Time

The <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Biden administration</a> began notifying Americans who applied for <a href="https://www.dailywire.com/topic/student-loan-cancellation" target="_blank" rel="noopener">student loan forgiveness</a> on Saturday that their requests had been greenlit, even as the controversial policy continues to move through the federal court system.
President Joe Biden <a href="https://www.dailywire.com/news/more-than-8-million-people-apply-for-student-debt-cancellation-as-biden-drops-application-link" target="_blank" rel="noopener">unveiled a website</a> last month where Americans could provide basic information to determine eligibility for debt forgiveness. Some applicants received an email from Education Secretary Miguel Cardona saying they were “eligible for loan relief” after a review of their submission, according to a <a href="https://www.businessinsider.com/biden-administration-notifies-approved-student-loan-relief-applicants-2022-11" target="_blank" rel="noopener">report</a> from Business Insider. “We have sent this approval on to your loan servicer,” the message said. “You do not need to take any further action.&#8221;
Cardona <a href="https://twitter.com/SecCardona/status/1593980726172561408" target="_blank" rel="noopener">affirmed</a> on social media that applicants should not “worry” if they do not immediately receive the email since “more are coming.” He added that the administration remains confident in its legal authority to execute the program.
Indeed, the promise of loan cancellation occurs despite multiple lawsuits challenging the plan, which is <a href="https://www.dailywire.com/news/breaking-federal-court-freezes-bidens-student-loan-bailout" target="_blank" rel="noopener">on hold</a> after a ruling from the U.S. Court of Appeals for the Eighth Circuit.
Solicitor General Elizabeth Prelogar <a href="https://www.dailywire.com/news/biden-administration-asks-supreme-court-to-allow-student-loan-forgiveness-plan" target="_blank" rel="noopener">asked</a> the Supreme Court last week to rule on whether the administration’s policy can continue. &#8220;The Eighth Circuit’s erroneous injunction leaves millions of economically vulnerable borrowers in limbo, uncertain about the size of their debt and unable to make financial decisions with an accurate understanding of their future repayment obligations,” she contended.
If the policy survives the legal challenges, the Department of Education would <a href="https://www.dailywire.com/news/breaking-biden-announces-details-of-student-loan-cancellation-plan" target="_blank" rel="noopener">cancel</a> $10,000 in student debt for millions of borrowers earning less than $125,000 per year, as well as $20,000 for students who attended college via Pell Grant.
The lawsuit granted standing from the Eighth Circuit was filed by multiple Republican state attorneys general who <a href="https://www.dailywire.com/news/unfair-unconstitutional-and-unwise-two-more-lawsuits-hit-biden-over-student-debt-cancellation" target="_blank" rel="noopener">asserted</a> that the White House illegally bypassed Congress while drafting the student debt policy. The officials pointed to the recent Supreme Court opinion in West Virginia v. EPA, which <a href="https://www.dailywire.com/news/supreme-court-rules-against-bidens-epa-says-agency-does-not-have-authority-to-regulate-carbon-dioxide-emissions" target="_blank" rel="noopener">said</a> that federal agencies cannot assert “highly consequential power beyond what Congress could reasonably be understood to have granted.”
“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 complaint argued. “No statute permits President Biden to unilaterally relieve millions of individuals from their obligation to pay loans they voluntarily assumed.”
The loan cancellation policy comes after the passage of multiple large legislative packages, including the Inflation Reduction Act and renewed military and humanitarian aid for Ukraine. One <a href="https://www.cbo.gov/system/files/2022-09/58494-Student-Loans.pdf" target="_blank" rel="noopener">estimate</a> from the Congressional Budget Office predicts that the overall cost of the loan cancellation could reach $400 billion, with another $20 billion incurred by an extended pause on federal student loan repayments currently slated to end in January.
Biden’s legislative allies broadly support the legislation, although outgoing House Speaker Nancy Pelosi (D-CA) once <a href="https://www.dailywire.com/news/pelosi-agreed-with-devos-biden-cant-forgive-student-loans-she-just-caved" target="_blank" rel="noopener">expressed doubt</a> as to whether the commander-in-chief has the authority to unilaterally cancel federal debts without action from Congress. During a recent <a href="https://www.dailywire.com/news/elizabeth-warren-i-dont-have-any-doubt-biden-has-authority-to-cancel-student-loan-debt" target="_blank" rel="noopener">interview</a>, Sen. Elizabeth Warren (D-MA) remarked that former President Donald Trump and former President Barack Obama set similar precedents during their respective tenures.
“Look, I’d be delighted to codify what the president is doing, but here’s the key: I don’t have any doubt that the president has the legal authority to cancel this student loan debt,” she commented. “But we have a court down in Texas, and if they’re going to play politics instead of actually following the law, they do put the program at risk.”

65C9613B-FA40-4F7F-B669-0D86265C9CED_1_201_a

Biden Admin Tells People They Are Approved For Student Loan Cancellation Even As Court Battles Rage

Biden Admin Says Some Americans' Student Loans Have Been Canceled Despite Court Challenges

Supreme Court

The <a href="https://www.dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Biden administration</a> asked the Supreme Court to weigh in on its <a href="https://www.dailywire.com/topic/student-loan-cancellation" target="_blank" rel="noopener">student loan forgiveness plan</a> on Friday and let the program resume.
The plan has faced several legal disputes and is officially on hold after a ruling from an appellate court this week.
On Monday, the U.S. Court of Appeals for the 8th Circuit <a href="https://www.washingtonpost.com/politics/2022/11/18/supreme-court-student-loan-forgiveness/">ruled</a> in favor of a group of six Republican-led states who asked the court to pause any debt forgiveness during its court proceedings. The court issued an injunction that halted the plan. Last month, the court <a href="https://www.washingtonpost.com/education/2022/11/14/appeals-halts-student-loan-forgiveness/" target="_blank" rel="noopener">issued</a> an administrative stay to the states, but this week <a href="https://www.cnbc.com/2022/11/14/biden-student-loan-debt-relief-plan-appeals-court-rules.html" target="_blank" rel="noopener">found</a> that at least one state has standing to sue.
U.S. Solicitor General Elizabeth B. Prelogar told the high court in a <a href="https://docs-cdn-prod.news-engineering.aws.wapo.pub/publish_document/7d1b7c7e-5b8b-4ba9-a353-91426075f82a/published/7d1b7c7e-5b8b-4ba9-a353-91426075f82a.pdf" target="_blank" rel="noopener">filing</a> that the “Eighth Circuit’s erroneous injunction leaves millions of economically vulnerable borrowers in limbo, uncertain about the size of their debt and unable to make financial decisions with an accurate understanding of their future repayment obligations.”
If the Supreme Court does not get rid of the injunction, Prelogar said it should “set the case for expedited briefing and argument this Term to avoid prolonging this uncertainty for the millions of affected borrowers.”
Last week, Texas U.S. District Judge Mark Pittman <a href="https://www.dailywire.com/news/breaking-federal-court-declares-bidens-student-loan-bailout-is-illegal" target="_blank" rel="noopener">ruled</a> that Biden’s plan is illegal, which essentially made it so that the Education Department could not take in additional applications or dismiss any student debt. The Biden administration <a href="https://www.dailywire.com/news/biden-doubles-down-on-student-loan-cancellation-despite-federal-ruling" target="_blank" rel="noopener">issued</a> an appeal to the ruling shortly after Pittman’s ruling.
The states at the heart of the case that resulted in the injunction claim that Biden’s plan acts in violation of the separations of power and the Administrative Procedure Act, CNN <a href="https://www.cnn.com/2022/11/18/politics/student-debt-relief-supreme-court/index.html" target="_blank" rel="noopener">reported</a>. A district court found that the states would not be successful, but the Eight Circuit reversed the ruling.
The legality and constitutionality of the student loan forgiveness plan is being questioned. It will <a href="https://www.cnn.com/2022/11/18/politics/student-debt-relief-supreme-court/index.html" target="_blank" rel="noopener">provide</a> up to $10,000 in debt cancellation for qualifying student loan borrowers who earn less than $125,000 as individuals, or earn $250,000 as a household. Those who obtained Pell Grants could have up to $20,000 canceled.
The <a href="https://www.nbcnews.com/politics/congress/bidens-student-loan-cancellation-plan-cost-400b-congressional-budget-o-rcna49478" target="_blank" rel="noopener">nonpartisan</a> Congressional Budget Office <a href="https://www.cbo.gov/system/files/2022-09/58494-Student-Loans.pdf" target="_blank" rel="noopener">estimated</a> that Biden&#8217;s plan will <a href="https://www.washingtonpost.com/us-policy/2022/09/26/cbo-student-loan-forgiveness-biden/" target="_blank" rel="noopener">cost</a> around $400 billion. The Biden administration has said it will <a href="https://www.ed.gov/news/press-releases/us-department-education-estimate-biden-harris-student-debt-relief-cost-average-30-billion-annually-over-next-decade" target="_blank" rel="noopener">cost</a> around $300 billion.
The Biden administration contends that it does have the legal authority for its plan due to the 2003 Higher Education Relief Opportunities for Students Act (<a href="https://www.congress.gov/bill/108th-congress/house-bill/1412/text" target="_blank" rel="noopener">HEROES</a>). The law allows the Education Secretary to get rid of or alter student loan debt in times of war and national emergencies for specific individuals.
According to a <a href="https://www.congress.gov/bill/108th-congress/house-bill/1412" target="_blank" rel="noopener">summary</a> of the law, such individuals include military service members, people who live or work somewhere that is “declared a disaster area … in connection with a national emergency,&#8221; or who have “suffered direct economic hardship as a direct result of a war or other military operation or national emergency.”
<a href="https://www.dailywire.com/author/ryan-saavedra" target="_blank" rel="noopener">Ryan Saavedra</a> and <a href="https://www.dailywire.com/author/benjamin-zeisloft" target="_blank" rel="noopener">Ben Zeisloft</a> contributed to this report.

Biden Administration Asks Supreme Court To Allow Student Loan Forgiveness Plan

<a href="https://www.dailywire.com/topic/white-house">White House</a> Chief of Staff Ron Klain has a message for <a href="https://www.dailywire.com/topic/taylor-swift">Taylor Swift</a> fans struggling to purchase tickets for her upcoming tour: the government does it better, apparently.
Klain took to Twitter bragging about the efficiency of the Biden administration&#8217;s <a href="https://www.dailywire.com/topic/student-loan-cancellation">student debt</a> relief website, which was created for borrowers to take advantage of the president&#8217;s plan to cancel $10,000 or $20,000 worth of debt, depending on income level.
The White House staffer noted how well the application process worked.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Over my years in the public and private sectors, I&#39;ve had people tell me: If only the government could work like business.
Well, the team at <a href="https://twitter.com/usedgov?ref_src=twsrc%5Etfw">@USEdgov</a> and <a href="https://twitter.com/USDS?ref_src=twsrc%5Etfw">@USDS</a> built a Student Loan Forgiveness portal that processed 8 MILLION applications in the first 30 hours without a crash. <a href="https://t.co/VaaoTMVycg">https://t.co/VaaoTMVycg</a>
&mdash; Ronald Klain (@WHCOS) <a href="https://twitter.com/WHCOS/status/1592567836475785217?ref_src=twsrc%5Etfw">November 15, 2022</a></blockquote>
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 &#8220;Over my years in the public and private sectors, I&#8217;ve had people tell me: If only the government could work like business,&#8221; Klain shared on Twitter. &#8220;Well, the team at @USEdgov and @USDS built a Student Loan Forgiveness portal that processed 8 MILLION applications in the first 30 hours without a crash.&#8221;
With that, Klain shared the link to an Axios article titled, “Ticketmaster crashes during Taylor Swift ticket presale.”
Swift fans have become increasingly frustrated as they experienced technical difficulties trying to obtain tickets. Ticketmaster&#8217;s pre-sale <a href="https://www.dailywire.com/topic/music">tickets</a> for Swift’s &#8220;The Eras Tour&#8221; opened to fans with registered codes on Tuesday. 
The ticket sales and distribution company explained why the site crashed, blaming the overloaded system on the sheer number of people trying to get on simultaneously.
Ticketmaster <a href="https://twitter.com/Ticketmaster/status/1592579481449168898">shared</a> on Tuesday that “there has been historically unprecedented demand with millions showing up” to buy tickets. The company addressed fans waiting in the virtual queue, confirming that the line was moving and they needed to “hang tight.” They also defended themselves, saying “hundreds of thousands” of tickets had been successfully purchased. 
“The Eras Tour” tickets have been popping up on third-party resale sites for thousands or even tens of thousands of dollars. 
But at least fans will likely get to see a Taylor Swift concert if they jump through the hoops required to secure tickets. Unfortunately, the same can’t be said for applicants to the student debt relief website Klain is so proud of, as a federal judge in Texas <a href="https://www.dailywire.com/news/biden-doubles-down-on-student-loan-cancellation-despite-federal-ruling">ruled last week</a> that Biden’s student loan bailout is illegal. 
The Biden administration is appealing the decision, but there are no guarantees that they’ll prevail, and the legal process will likely drag on for months. Meanwhile, the Education Department is not accepting any new applications for debt relief as these issues go to court.

Ron Klain and Taylor Swift

White House Brags That Student Debt Relief Site Never Crashed As Taylor Swift Fans Struggle To Secure Concert Tickets

Taylor Swift

White House

Sen. <a href="https://www.dailywire.com/topic/elizabeth-warren" target="_blank" rel="noopener">Elizabeth Warren</a> (D-MA) doesn&#8217;t have &#8220;any doubt&#8221; that President Joe Biden has the authority to cancel student debt.
Appearing on NBC&#8217;s &#8220;Meet the Press&#8221; on Sunday, Warren told host Chuck Todd that Biden had the authority since former Presidents <a href="https://obamawhitehouse.archives.gov/issues/education/higher-education/ensuring-that-student-loans-are-affordable" target="_blank" rel="noopener">Barack Obama</a> and <a href="https://www.forbes.com/sites/adamminsky/2020/10/11/trump-includes-student-loan-forgiveness-in-latest-stimulus-proposal-signaling-its-broad-appeal/" target="_blank" rel="noopener">Donald Trump</a> forgave some debt during their tenure. Warren then lashed out at the Texas judge who ruled that canceling debts was illegal, claiming that loan forgiveness was evidence that Democrats fight for working Americans.
&#8220;Look, I&#8217;d be delighted to codify what the president is doing, but here&#8217;s the key: I don&#8217;t have any doubt that the president has the legal authority to cancel this student loan debt,&#8221; said Warren. &#8220;President Trump did it, President Obama did it, and President Biden has actually done it up to now on student loan debt payments. But, we have a court down in Texas, and if they&#8217;re gonna play politics instead of actually following the law, they do put the program at risk.&#8221;
&#8220;This is one of the clearest differences between Democrats and Republicans,&#8221; she added. &#8220;Democrats, led by Joe Biden, are out there saying, &#8216;we hear you on what it&#8217;s like to get crushed by student loan debt. We know what that means and so we&#8217;re here to try to help.&#8217; The Republicans? They got nothin&#8217;. They say, &#8216;nope,&#8217; the only people that they&#8217;re willing to fight for are billionaires and billionaire corporations and conspiracy theorists. Democrats fight for working people and when we fight for working people, we win.&#8221;
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WATCH: <a href="https://twitter.com/SenWarren?ref_src=twsrc%5Etfw">@SenWarren</a> (D-Mass.) says she has no doubt President Biden has the authority to carry out his student debt forgiveness plan.
&quot;If [the Texas court is] going to play politics instead of following the law, they&#39;re going to put the program at risk.&quot; <a href="https://t.co/1tpaNhHuHs">pic.twitter.com/1tpaNhHuHs</a>
&mdash; Meet the Press (@MeetThePress) <a href="https://twitter.com/MeetThePress/status/1591823293941796867?ref_src=twsrc%5Etfw">November 13, 2022</a></blockquote>
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On Thursday, U.S. District Judge Mark Pittman of the Northern District of Texas <a href="https://www.dailywire.com/news/breaking-federal-court-declares-bidens-student-loan-bailout-is-illegal" target="_blank" rel="noopener">declared Biden&#8217;s student loan bailout unlawful</a> and vacated Biden&#8217;s plan to cancel up to $10,000 in debt for people making less than $125,000 a year or families that earn less than $250,000.
“Whether the Program constitutes good public policy is not the role of this Court to determine,&#8221; Pittman wrote in his ruling. &#8220;Still, no one can plausibly deny that it is either one of the largest delegations of legislative power to the executive branch, or one of the largest exercises of legislative power without congressional authority in the history of the United States.”
“In this country, we are not ruled by an all-powerful executive with a pen and a phone,” Pittman continued. “Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government. As President James Madison warned, ‘[t]he accumulation of all powers, legislative, executive, and judiciary, in the same hands, whether of one, a few, or many, and whether hereditary, self-appointed, or elective, may justly be pronounced the very definition of tyranny.’&#8221;
The Biden administration has since <a href="https://www.dailywire.com/news/biden-doubles-down-on-student-loan-cancellation-despite-federal-ruling" target="_blank" rel="noopener">appealed</a> that ruling.
RELATED: <a href="https://www.dailywire.com/news/breaking-federal-court-declares-bidens-student-loan-bailout-is-illegal">Federal Court Declares Biden&#8217;s Student Loan Bailout Is Illegal</a>

Congress Negotiating Omnibus Spending Bill With Friday Deadline

Elizabeth Warren: ‘I Don’t Have Any Doubt’ Biden Has Authority To Cancel Student Loan Debt

Elizabeth Warren Has 'No Doubt' Biden Has Authority To Cancel Student Loan Debt

Elizabeth Warren

Meet the Press

The <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Biden administration</a> doubled down on its move to <a href="https://www.dailywire.com/topic/student-loans" target="_blank" rel="noopener">cancel student debt</a> for millions of borrowers after a federal judge nixed the controversial program.
U.S. District Judge Mark Pittman in the Northern District of Texas <a href="https://www.dailywire.com/news/breaking-federal-court-declares-bidens-student-loan-bailout-is-illegal" target="_blank" rel="noopener">declared</a> the debt cancellation plan illegal on Thursday evening in response to a <a href="https://www.dailywire.com/news/shifting-the-burden-to-taxpayers-biden-slammed-with-lawsuit-against-student-loan-power-grab" target="_blank" rel="noopener">lawsuit</a> filed by the Job Creators Network Foundation’s Legal Action Fund. The student loan cancellation plan would <a href="https://www.dailywire.com/news/breaking-biden-announces-details-of-student-loan-cancellation-plan" target="_blank" rel="noopener">eliminate</a> $10,000 in debt for borrowers earning under $125,000 per year and $20,000 for students who attended college using Pell Grants.
White House Press Secretary Karine Jean-Pierre said in a <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/11/10/statement-by-white-house-press-secretary-karine-jean-pierre-on-the-district-courts-ruling-on-the-biden-harris-administrations-student-debt-relief-program/" target="_blank" rel="noopener">statement</a> that an appeal has already been filed. “The President and this administration are determined to help working and middle-class Americans get back on their feet, while our opponents — backed by extreme Republican special interests — sued to block millions of Americans from getting much-needed relief,” she remarked. “We will never stop fighting for hardworking Americans most in need — no matter how many roadblocks our opponents and special interests try to put in our way.”
The Department of Education has received applications from 26 million individuals seeking student loan cancellation, of which 16 million have been approved. Jean-Pierre added that the agency will “hold onto their information so it can quickly process their relief once we prevail in court.”
The complaint from the Job Creators Network Foundation, a conservative advocacy group, contends that the student loan elimination policy violated the notice-and-comment processes mandated by the Administrative Procedure Act. Other parties, including multiple conservative state attorneys general, have likewise <a href="https://www.dailywire.com/news/federal-judge-dismisses-republican-led-challenge-to-biden-student-debt-bailout" target="_blank" rel="noopener">filed suit</a> over the debt cancellation effort.
Job Creators Network Foundation President Elaine Parker celebrated the judge’s decision in a statement provided to The Daily Wire. &#8220;The court has correctly ruled in favor of our motion and deemed the Biden student loan program illegal,” she said. “The judge criticized the Biden administration program, calling it &#8216;one of the largest exercises of legislative power without congressional authority in the history of the United States.&#8217; This ruling protects the rule of law which requires all Americans to have their voices heard by their federal government.”
The White House has also extended the <a href="https://www.dailywire.com/news/nationwide-pause-on-student-loan-debt-set-to-expire-biden-officials-expected-to-update-borrowers-soon" target="_blank" rel="noopener">pause</a> on federal student loan repayment to January 2023 and will permit borrowers with undergraduate loans to cap payments at 5% of monthly income. One <a href="https://www.cbo.gov/system/files/2022-09/58494-Student-Loans.pdf" target="_blank" rel="noopener">estimate</a> from the Congressional Budget Office predicts that the overall cost of the debt elimination could reach $400 billion, with another $20 billion incurred by the extended pause on repayments.
“This attempted illegal student loan bailout would have done nothing to address the root cause of unaffordable tuition: greedy and bloated colleges that raise tuition far more than inflation year after year while sitting on $700 billion in endowments,” Parker continued. “We hope that the court’s decision today will lay the groundwork for real solutions to the student loan crisis.&#8221;
Though President Joe Biden <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/10/21/remarks-by-president-biden-on-student-loan-forgiveness/" target="_blank" rel="noopener">claimed</a> that “not a dime” of the debt cancellation will benefit the top 5% of earners, data have indicated that student loan forgiveness largely helps individuals who are poised to earn the most from their degrees, as graduate-level education is <a href="https://www.dailywire.com/news/schumer-slams-fat-cats-who-dont-want-to-cancel-student-loans" target="_blank" rel="noopener">often necessary</a> for the most lucrative professions. A <a href="https://www.brookings.edu/research/student-loan-forgiveness-is-regressive-whether-measured-by-income-education-or-wealth/" target="_blank" rel="noopener">report</a> from the Brookings Institution observed that one-third of student debt is owed by the wealthiest 20% of households, while only 8% is owned by the bottom 20%.

President Joe Biden Remarks at Union Station

Biden Doubles Down On Student Loan Cancellation Despite Federal Ruling

Biden Files Appeal After Student Loan Cancellation Nixed

A federal judge in <a href="https://www.dailywire.com/topic/texas" target="_blank" rel="noopener">Texas</a> ruled Thursday evening that President <a href="https://www.dailywire.com/topic/joe-biden" target="_blank" rel="noopener">Joe Biden&#8217;s</a> student loan bailout is illegal, dealing a massive blow to the administration.
U.S. District Judge Mark Pittman made the ruling in response to a lawsuit filed by the Job Creators Network Foundation, which alleged that Biden&#8217;s student loan bailout violated federal procedures.
The Job Creators Network filed the lawsuit last month on behalf of two borrowers, one who did not qualify for the full amount the program offered and another who was deemed ineligible altogether.
&#8220;This case involves the question of whether Congress—through the HEROES Act—gave the Secretary authority to implement a Program that provides debt forgiveness to millions of student-loan borrowers, totaling over $400 billion,&#8221; Pittman wrote. &#8220;Whether the Program constitutes good public policy is not the role of this Court to determine. Still, no one can plausibly deny that it is either one of the largest delegations of legislative power to the executive branch, or one of the largest exercises of legislative power without congressional authority in the history of the United States.&#8221;
&#8220;In this country, we are not ruled by an all-powerful executive with a pen and a phone,&#8221; Pittman continued. &#8220;Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government. As President James Madison warned, &#8216;[t]he accumulation of all powers, legislative, executive, and judiciary, in the same hands, whether of one, a few, or many, and whether hereditary, self-appointed, or elective, may justly be pronounced the very definition of tyranny.&#8217; THE FEDERALIST NO. 47.&#8221;
&#8220;The Court is not blind to the current political division in our country,&#8221; he concluded. &#8220;But it is fundamental to the survival of our Republic that the separation of powers as outlined in our Constitution be preserved. And having interpreted the HEROES Act, the Court holds that it does not provide &#8216;clear congressional authorization&#8217; for the Program proposed by the Secretary.&#8221;
Biden’s controversial student loan bailout would cancel up to $10,000 of student debt for individuals who earn less than $125,000 per year, or less than $250,000 for married couples.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
NEWS: Federal judge in Texas strikes down Biden&#39;s student debt relief program, declaring it illegal. <a href="https://t.co/02Doi3CXwC">pic.twitter.com/02Doi3CXwC</a>
&mdash; Michael Stratford (@mstratford) <a href="https://twitter.com/mstratford/status/1590856666039607296?ref_src=twsrc%5Etfw">November 10, 2022</a></blockquote>
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This is a breaking news story; refresh the page for updates.

US-POLITICS-BIDEN

Federal Court Declares Biden’s Student Loan Bailout Is Illegal

Federal Court Declares Biden's Student Loan Bailout Is Illegal

Joe Biden

The <a href="https://www.dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Biden administration</a> warned Americans Thursday that 16 million student loan debts already forgiven by his administration would resume if Republicans sweep the midterms next week.
&#8220;If Republican officials get their way, tens of millions of Americans&#8217; monthly costs will rise dramatically when student loan payments resume next year,&#8221; said a statement by the administration reported by <a class="editor-rtfLink" href="https://www.cnbc.com/2022/11/03/close-to-26-million-americans-have-applied-for-student-loan-forgiveness.html" target="_blank" rel="noopener">CNBC</a>.
&#8220;Working and middle-class Americans who could have up to $10,000 or $20,000 of their student debt relieved under the Biden Administration&#8217;s plan will remain under the burden of loan debt — preventing them from pursuing the dream of homeownership, saving up for retirement, or starting small businesses.&#8221;
Last summer, the White House unveiled its controversial loan relief plan to cancel up to $10,000 of student debt for individuals who earn less than $125,000 per year or less than $250,000 for married couples.
However, the U.S. Court of Appeals for the 8th Circuit ordered the Biden administration last month to halt canceling student loan debt after approximately 26 million Americans applied for the program.
The court granted an administrative stay while it considers a request for an injunction from six states — Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina — seeking to block Biden&#8217;s program. The states say Biden did not have the right to act without congressional approval.
While speaking at the Central New Mexico Community College in Albuquerque on Thursday, Biden said the Department of Education will have approved 16 million student loan forgiveness applications.
The president added that department officials would send the necessary paperwork to student loan service providers by the end of the week.
&#8220;The last step before the 16 million Americans can have their loan discharged,&#8221; Biden said, according to <a href="https://thehill.com/homenews/administration/3718495-biden-says-16m-student-debt-relief-applicants-to-be-approved-this-week/">The Hill</a>.
Biden also took a moment to again blame Republicans for the lower court’s order to pause the program, adding that &#8220;their outrage is just simply wrong, and I might add … I&#8217;m not being too political here, but hypocritical.&#8221;
&#8220;My plan&#8217;s going to make a real difference lowering the monthly costs for families,&#8221; Biden said.
Mainstream Democratic circles, including The Washington Post&#8217;s editorial board and former Treasury Secretary Lawrence Summers, have criticized the Biden administration&#8217;s plan.
Last year, House Speaker Nancy Pelosi (D-CA) was also skeptical of unilateral plans to cancel student loans, explaining to reporters that Biden didn&#8217;t have that kind of power.
Nixing $10,000 of student loan debt per borrower will cost $298 billion in 2022 and a total of $329 billion by 2031 if the policy is renewed each year, according to a nonpartisan analysis from the University of Pennsylvania&#8217;s Wharton School.
A report from the Brookings Institution observed that the wealthiest 20% of households owe one-third of student debt. In comparison, only 8% is owned by the bottom 20% — likely because graduate degrees are often necessary for the most lucrative professions.
Ryan Saavedra contributed to this report.

Biden Administration Warns Americans Student Debt Payments Resume Next Year ‘If Republican Officials Get Their Way’; 16 Million Applications Already Approved

The Pacific Legal Foundation filed an emergency application on Tuesday asking the <a href="http://dailywire.com/topic/supreme-court" target="_blank" rel="noopener">Supreme Court</a> to stop the <a href="http://dailywire.com/topic/biden-administration?_gl=1*nj7pih*_ga*OTAwNTI1NTYwLjE2MTM5NzIxMzI.*_ga_CZKR9ZYKJP*MTY2NzMyODc2OC4xNDE2LjEuMTY2NzMyODc4Mi40Ni4wLjA." target="_blank" rel="noopener">Biden administration</a> from executing its policy to cancel $10,000 in <a href="https://www.dailywire.com/topic/student-loans">student debt</a> for millions of borrowers.
The nonprofit legal organization argued that permitting the White House to enact the measure without judicial review would “invite similar mischief from future administrations on myriad other issues.” The student loan cancellation plan would also <a href="https://www.dailywire.com/news/breaking-biden-announces-details-of-student-loan-cancellation-plan" target="_blank" rel="noopener">forgive</a> up to $20,000 for students who attended college using Pell Grants.
“The administration is attempting to erase half a trillion dollars in debt without any legal basis,” Pacific Legal Foundation Caleb Kruckenberg remarked in a <a href="https://pacificlegal.org/press-release/pacific-legal-foundation-asks-supreme-court-to-halt-unlawful-student-debt-cancellation/" target="_blank" rel="noopener">press release</a>. “The Court ought to put the brakes on this lawless action while it’s considered by the courts.”
The court system has previously nixed some attempts to block the student loan cancellation policy. Justice Amy Coney Barrett <a href="https://www.dailywire.com/news/scotus-refuses-lawsuit-to-block-bidens-student-loan-forgiveness-plan" target="_blank" rel="noopener">rejected</a> an emergency appeal filed by the Brown County Taxpayers Association in Wisconsin, likely because the plaintiffs lacked sufficient legal standing to challenge the policy.
District Judge Henry Autrey in the Eastern District of Missouri said that his court <a href="https://www.dailywire.com/news/federal-judge-dismisses-republican-led-challenge-to-biden-student-debt-bailout" target="_blank" rel="noopener">lacked</a> jurisdiction to hear a separate lawsuit from six Republican attorneys general, prompting the officials to seek immediate relief from the Eighth Circuit Court of Appeals. The court indeed <a href="https://www.dailywire.com/news/breaking-federal-court-freezes-bidens-student-loan-bailout" target="_blank" rel="noopener">ordered</a> the White House to refrain from canceling student debt on October 21, granting an administrative stay while judges consider the lawsuit.
Critics of the student loan policy, which include <a href="https://www.dailywire.com/news/raises-demand-and-increases-inflation-obamas-top-economist-shreds-biden-plan-for-student-loan-cancellation" target="_blank" rel="noopener">many fellow liberals</a>, contend that Biden lacks the authority to unilaterally erase as much as $500 billion in debt without approval from Congress. The Pacific Legal Foundation likewise claimed that the Department of Education has failed to issue any formal rules or “other legally binding explanation” of the student debt cancellation program.
“At no point has the government made a plausible argument that the underlying policy is legal,” Pacific Legal Foundation attorney Michael Poon added. “The administration’s ‘lawmaking by press release’ is clearly unconstitutional.”
A <a href="https://www.dailywire.com/news/flagrantly-illegal-lawsuit-hits-biden-over-student-debt-cancellation" target="_blank" rel="noopener">separate complaint</a> filed by the organization contended that President Joe Biden’s use of the HEROES Act, a 2003 law meant to aid Iraq War veterans and their families, as justification for the loan elimination occurred with “breathtaking informality and opacity.”
Biden, however, announced last month that more than 22 million people have already applied for student loan relief. “My commitment when I ran for President of the United States: that if I was elected, I’d make the government work and deliver for the people,” he said during <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/10/21/remarks-by-president-biden-on-student-loan-forgiveness/" target="_blank" rel="noopener">remarks</a> at Delaware State University, an historically black college. “A simple application process keeps that commitment, just as I’m keeping my commitment to relieve student debt as borrowers recover from the economic crisis caused by the once-in-a-lifetime pandemic.”
Though the commander-in-chief claimed that “not a dime” will benefit the top 5% of earners, data have indicated that student loan forgiveness largely helps individuals who are poised to earn the most from their degrees, as graduate-level education is <a href="https://www.dailywire.com/news/schumer-slams-fat-cats-who-dont-want-to-cancel-student-loans" target="_blank" rel="noopener">often necessary</a> for the most lucrative professions. A <a href="https://www.brookings.edu/research/student-loan-forgiveness-is-regressive-whether-measured-by-income-education-or-wealth/" target="_blank" rel="noopener">report</a> from the Brookings Institution observed that one-third of student debt is owed by the wealthiest 20% of households, while only 8% is owned by the bottom 20%.

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