Wednesday, December 07, 2022

US stops accepting student loan forgiveness applications after court ruling

In a statement on the loan forgiveness program’s website, the government explained that as a result of the court’s decision, “applications are not accepted at this time” and indicated that the administration is working to reverse that order.

The United States government led by Joe Biden stopped accepting applications for student loan forgiveness this Friday, Following a court ruling that declared the plan promoted by the Democratic executive illegal.

In an order issued on Thursday, Texas Northern District Judge Mark Pittman called the program, which seeks to cancel up to $20,000 in loans per person, an “unconstitutional maneuver.”

In the case, legal representatives for the Biden administration argued that the Heroes Act, approved by Congress in 2003, empowered the executive to implement the loan forgiveness plan.

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The judge rejected this argument and assured in Thursday’s ruling that the executive does not have “clear legislative authority” to carry out the program.

“In this country we are not governed by an omnipotent executive (…), but by a constitution that establishes three independent branches of government,” wrote Judge Pittman, who was appointed by former President Donald Trump.

The court’s decision comes a week after the US Supreme Court dismissed an attempt by a conservative organization to block a debt relief program.

Judge Amy Connie Barrett denied an emergency request from the California-based Pacific Legal Foundation for the High Court to block White House policy.

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The program, for which nearly 26 million people have already applied, has been temporarily suspended by another federal court order following a complaint led by 6 states with Republican governments.

at the end of August, Biden announced that he would forgive a portion of the debt that millions of university students had contracted with the federal government to fund their studies, In a nod to the youth vote ahead of the legislative election to be held on 8 November.

The president reported canceling loans of up to $20,000 per student, but the measure would only benefit those who make less than $125,000 a year or who are getting married, whose income exceeds $250,000 a year. is less.

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