Court Suspends Biden’s Student Loan Bailout Program

On Friday night, a federal appeals court suspended President Biden’s contentious student debt rescue.

Court Rules Against Program

After millions of Americans signed up to participate in the program, the U.S. Court of Appeals for the 8th Circuit ruled the Biden administration could not start canceling student loan debt.

In order to halt Biden’s proposal, six states—Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina — asked the court for an injunction.

The court agreed to an administrative stay during this time. States claim that Biden lacked the authority to act outside congressional authorization.

For those who make less than $125,000 annually or less than $250,000 for married people, Biden’s contentious loan relief plan could forgive up to $10,000 of student loan debt.

In a statement on Friday, Biden argued “our school loan plan cuts expenses for Americans while they recuperate from the epidemic to give everyone a little more room to breathe.”

“Republican governors and members of Congress are exerting every effort to block humanitarian relief. Their fury is misguided and hollow.”

 

When the plan was first revealed in late August, Daily Wire Editor Ben Shapiro criticized the Biden administration for publicly attacking anyone who disagreed with his proposal to unilaterally eliminate student debt.

Shapiro remarked in a monologue, “This is morally repugnant; it’s horrible.”

“The administration will shut you down, wreck your finances, offer you support, and then two years later, ruin your reputation if you are a company owner who simply wants to run and keep your staff working.”

“Then, two years after that, they’ll use it as pressure to get you to back their politically motivated plan to bail out their preferred political constituents. They’ll tell you you’re a nice person for making sure your workers can provide for their families.”

Democrats Against Biden’s Strategy

Mainstream Democratic figures like Lawrence Summers and the editorial board of the Washington Post have also attacked Biden’s strategy.

When asked about unilateral intentions to cancel student loans last year, House Speaker Nancy Pelosi (D-CA) stated to reporters that Biden didn’t have that type of authority.

Based on an impartial assessment from the University of Pennsylvania’s Wharton School, eliminating $10,000 in student loan debt per borrower will cost $298 billion in 2022 and $329 billion overall by 2031 if the program is renewed each year.

One-third of student debt is held by the richest 20% of households, according to a Brookings Institution analysis, while only 8% is held by the poorest 20% of households. This disparity is probably due to the fact graduate degrees are frequently required for the highest-paying professions.

Democrats have the opinion that everyone should have the financial means to pursue their passions. As a result, they enjoy calling you a deadbeat for just being sensible while admiring other deadbeats for pursuing their ambition to become a famous finger painter.This article appeared in Conservative Cardinal and has been published here with permission.

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