President Biden ran his campaign for the 2020 presidential election on a few main issues. So far, the only one he has done anything with is the student loan crisis. With more than 26 million people asking for his relief package, and 16 million being approved before it was shut off, it’s a sign that the “gimme, gimme, gimme” campaigns of the Democrats have struck a chord.
Now, the highest court in the land will decide on it.
With the Supreme Court taking the case, these millions of borrowers are waiting with bated breath to learn about the fate of their loans. Under the terms, Biden announced, $10,000 in federal student debt forgiveness for people earning less than $125,000, or households under $250,000. Meanwhile, Pell Grant recipients who are given grants to help offset the costs due to poverty are eligible for an additional $10,000 in relief. In total, the Congressional Budget Office expects this will cost taxpayers $400 billion over the next three decades.
President Biden is not happy with his giveaway to buy votes in future elections being shut down by Republicans. Texas already has a case preventing Biden from implementing the forgiveness program in their state, and several states have followed with their own lawsuits. A separate suit from six states saw a three-judge panel from the 8th Circuit Court of Appeals in St Louis put Biden’s plan on hold. It is that case that is now going before the Supreme Court.
Conservative attorneys and politicians have rightfully been slamming Biden for overstepping his authority with this decision without Congressional approval. They saw this for what it was; an unfair giveaway for those already making food money at the expense of the American taxpayer. Given how many people paying for this have no degree, it was a tax for not getting a piece of paper that, in many cases, proves to be useless. It also did nothing to help impact the struggling trade industry.
Attorney General Eric Schmitt (R-MO) said following the high court’s decision that Biden’s plan “would saddle Americans who didn’t take out loans or already paid theirs off with even more economic woes.” This is a concern for many conservatives across the US and rightly so. His home state of Missouri is one of the six states on the case, as well as Arkansas, Iowa, Kansas, Nebraska, and South Carolina.
Complicating matters even more is Biden’s insistence that canceling these loans is legal under a 2003 law for military members. The HEROES Act allows the secretary of education to “waive or modify any statutory or regulatory provision applicable to the student financial assistance programs … as the Secretary deems necessary in connection with a war or other military operation or national emergency.”
That tiny term “national emergency” is the smoking gun Biden has hedged his bets on. This phrase in an Act written for our nation’s finest is a horrible overstep and gross abuse of powers. Thankfully the 8th Circuit panel was able to understand this with their ruling. They saw little harm in suspending the program since repayments have been suspended. Instead, they saw the writing on the wall that if they allowed them to happen before a solid court ruling would be disastrous for the economy and set a dangerous precedent.
U.S. District Judge Mark Pittman, an appointee of former President Donald Trump took a much stronger stance in Texas. Instead of erring on the side of caution and kicking it up, he explained that this program needed clear and thorough congressional authorization to be permitted. Pittman also thought it was incredibly egregious of the government to enact this program without hearing from the people who would be partially excluded from this program.