News Story

Biden’s student loan forgiveness scheme fails in federal court

A federal judge ruled the plan an unconstitutional exercise of legislative power

President Joe Biden’s attempt to implement a student loan forgiveness program was ruled “an unconstitutional exercise of Congress’s legislative power” by District Judge Mark Pittman on Thursday, Nov. 10.

The federal judge noted there was no congressional authorization for the program.

The Biden administration continued receiving applications for the program in October, even though it was temporarily blocked by a federal judge after six states mounted a legal challenge. A lawsuit against the program was also filed by Job Creators Network the same month.

The network alleged that the Department of Education did not allow public comment on the program and it did not have authority under the Heroes Act. The judge agreed that the department did not provide proof that it received legislative approval.

The power to provide relief for student debt comes from congressional authority, not the executive branch.

The administration immediately appealed the ruling. It is likely the challenge will be heard by the U.S. Supreme Court. If the Biden administration prevails, the program would relieve up to $10,000 in student loans for people making under $125,000 and up to $20,000 for students who were given Pell grants.

The Department of Education has stopped accepting applications due to the most recent ruling.

There were 1,430,900 student loan borrowers in Michigan as of 2021. The loans totaled $51.8 billion, with an average balance of $36,221. There are 113,041 students, or 7.9% of borrowers, in the state who are delinquent with payments.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.