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Texas judge strikes down Biden’s loan forgiveness plan

Texas judge strikes down Biden's loan forgiveness plan

A US judge in Texas on Thursday blocked President Joe Biden’s plan to provide millions of borrowers up to $20,000 each in federal student loan forgiveness, a program already on hold while a federal appeals court in St. Louis considers a separate lawsuit by six states challenging it.

District Court Judge Mark Pittman, a Fort Worth-based appointee of former President Donald Trump, said the program usurped the power of Congress to make laws.

“In this country, we are not ruled by an all-powerful executive with a pen and a phone. Instead, we are governed by a Constitution that establishes three distinct and independent branches of government,” Pittman wrote.

He added: “The Court is not blind to the current political division in our country. But it is critical to the survival of our Republic that the separation of powers as outlined in our Constitution be preserved.”

The debt forgiveness plan would cancel $10,000 in student loan debt for those earning less than $125,000 or for households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate greater financial need, would receive an additional $10,000 in debt forgiveness.

The cancellation applies to federal student loans used to attend undergraduate and graduate school, along with Parent Plus loans.

The US Court of Appeals for the Eighth Circuit suspended the forgiveness plan on October 21 while considering an effort by the states of Nebraska, Missouri, Iowa, Kansas, Arkansas and South Carolina to block the program.

While the stay temporarily prevented the administration from repaying the debt, the White House encouraged borrowers to continue to apply for relief, saying the court order did not prevent applications or review of applications.

White House press secretary Karine Jean-Pierre said the administration disagreed with Thursday’s ruling and the Justice Department had filed an appeal. She said that so far 26 million people have applied for debt relief, and 16 million people have already approved their relief. The Department of Education would “quickly process her relief once we prevail in court,” she said.

“The president and this administration are determined to help working-class and middle-class Americans get back on their feet, while our opponents, backed by extreme Republican special interests, sued to stop millions of Americans from getting much-needed relief,” he said in a declaration.

[Con información de The Associated Press]

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