The U.S. Eighth Circuit Court of Appeals ruled Tuesday that it would end the Biden administration's student loan giveaway plan, which was presumed to cost taxpayers. Up to $500 million.
The lawsuit was originally filed by Missouri Attorney General Andrew Bailey (R), with several other states (Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma) joining the legal action.
“This precedent is essential.”
Former President Joe Biden refused to get an answer after the Supreme Court broke a fundamental plan to wipe out federal student loan debt. Instead, he responded to the verdict by developing many small but similar plans that promised to provide relief to the borrower by handing the costs to the taxpayer.
Biden's White House last year announcement That they had planned to launch another loan “forgiveness” initiative through a payment program, including valuable education, an income-driven repayment plan.
“Eight million borrowers have already been registered with SAVE, of which 4.5 million borrowers pay $0 each month, and more than 1 million additional borrowers pay less than $100 each month. “We'll do that,” the administration said at the time.
Critics accused Biden of ignoring him and even trying to avoid a Supreme Court decision.
Seven states led by Bailey sued the administration and argued that cancelling federal student loan obligations exceeded “legal authorities given to the Secretary of Education.”
On Tuesday, the Circuit Court agreed to uphold the state side and block the Biden administration's plan to cancel the debt.
Court decision read“We conclude that the secretary's authority to promulgate the ICR by the state is likely to succeed in their claims. [Income-Contingent Repayment] The plan will not allow a loan waiver at the end of the payment period. ”
“The secretary is far beyond this authority by designing plans that are largely permitted, rather than being paid back on loans,” he added.
“Joe Biden is out of duty, but this precedent cannot force the president to put bills on behalf of someone else's Ivy League debts,” Bailey said in response to a court decision. It's essential to make sure that you do that.”
The case will be like that It was returned Lower courts will determine whether a savings repayment plan is legal.
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