The Biden administration is appealing decisions against the plan, which offers $10,000 to $20,000 in "debt cancellation" for individuals or households of certain income levels. Some states have been successful in getting the 8th U.S. Circuit Court of Appeals to put a temporary hold on the plan. On Friday, the White House press secretary reported the administration has asked the Supreme Court to hear the case.
Meanwhile, a Texas district court blocked the plan after a lawsuit by Job Creators Network Foundation (JCNF). Elaine Parker, president of JCNF, says her organization will "strongly fight" the Biden administration's attempt to restart its "illegal student loan bailout program."
"As the district court ruling showed, JCNF has a very strong case that shouldn't fall on appeal," she reports to AFN. "It ruled that the bailout is 'one of the largest exercises of legislative power without congressional authority in the history of the United States.'
"Indeed, the Biden administration's student loan bailout is not just illegal but also counterproductive because it does nothing to address the root cause of the debt crisis: outrageous college tuition costs."
Parker adds that only by succeeding on appeal, upholding the district court decision, and permanently blocking this bailout can people work to "hold colleges accountable for causing this crisis."
WH press secretary Karine Jean-Pierre said the Biden administration is "confident" it has the legal authority to carry out the president's "student debt relief" plan. "And we won't let these baseless lawsuits stop us either," she added.
