Politics & Finances

Federal Judge Shoots Down Student Loan Forgiveness as Unconstitutional

Federal Judge Shoots Down Student Loan Forgiveness as Unconstitutional

A federal judge has shot down President Biden's student loan forgiveness plan as unconstitutional.

Texas U.S. District Judge Mark T. Pittman ruled in favor of the Job Creators Network Foundation on Thursday, November 10. The Washington Post shared the following excerpt from Pittman's:

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

In October, the conservative advocacy organization filed their lawsuit on behalf of two borrowers -- one who does not qualify for the full $20,000 in debt relief and one who is unqualified.

Court documents show that the Job Creators Network Foundation allege that the Biden administration violated federal procedures by denying borrowers the opportunity to provide public comment prior to releasing the details of the student debt forgiveness program. 

Elaine Parker, president of the Job Creators Network Foundation, praised the ruling immediately after Pittman issued it. Per the Post, she said this “protects the rule of law which requires all Americans to have their voices heard by their federal government.” 

She also expressed that the Foundation believes Biden's plan does not address the high cost of tuition and other root causes of student loan debt. Parker said she hopes the court's decision "will lay the groundwork for real solutions to the student loan crisis."

In September, the White House scaled back the student loan forgiveness program from its original form due to a lawsuit in Nebraska, ultimately excluding private loans that are guaranteed by the government. 

Originally, these types of loans were said to be included in the program. 

News of the student debt forgiveness initiative originally came on the heels of the signing of the Inflation Reduction Act of 2022, a sweeping tax and climate bill that was passed along party lines without the support of a single Republican Congressperson. 

An official White House fact sheet shared details about Biden's plan, which intends to eradicate $10,000 in student loan debt for those who do not have Pell Grants and make under $250,000 per year for couples filing jointly and $125,000 per year for others. Those who meet the income requirements and did receive federal Pell Grants stand to have $20,000 in debt forgiven.

The White House noted that nearly one-third of all borrowers, particularly those in vulnerable populations, have debt but no degree to show for it. 

Multiple states, including Indiana and Mississippi, have already ruled that any forgiven student loan debt will be taxable at the state level.

The Justice Department plans to appeal Pittman's decision.

What do you think about Federal Judge Pittman's ruling?

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