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Biden's student debt relief plan declared unconstitutional

Biden’s student debt relief plan declared unconstitutional

US District Court Judge Mark Bateman, appointed by former Republican President Donald Trump in Fort Worth, made the decision in a lawsuit backed by Job Creation Network Foundation On behalf of two borrowers.

The debt relief plan had already temporarily blocked By the US Court of Appeals for the Eighth Circuit, based in St. Louis, to consider an application by six Republican states to ban it.

Joe Biden’s plan has been the subject of several lawsuits by conservative attorneys general and legal groups, though prosecutors have struggled to convince the courts that the plan wronged them in the first place.

Justice Pittman, in a 26-page decision, wrote that the HEROES Act — the law that provides financial assistance for loans to military personnel and which the Biden administration relied on to craft the rescue package — does not allow implementation. $400 billion for Student Loan Forgiveness Program.

Thus, the program is an unconstitutional exercise of the legislative power of Congress and should be repealed.Justice Pittman writes.

The White House and prosecutors’ representatives did not immediately respond to requests for comment.

The nonpartisan Congressional Budget Office calculates that debt cancellation will eliminate about $430 billion of the $1.6 trillion in student debt and that more than 40 million people could benefit.

The plan, announced in August, will cancel up to $10,000 in student debt for borrowers who earn less than $125,000 a year, or $250,000 for married couples. Borrowers who have received Pell Scholarships for low-income students will have their debts reduced by up to $20,000.

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