Student Loan Bailout Blocked At Court Of Appeals

Student Loan Bailout Blocked At Court Of Appeals

Student Loan Bailout Blocked At Court Of Appeals

Hammer another nail in the coffin of Joe Biden’s vote buying program student loan debt bailout plan. The Eighth Circuit Court of Appeals, based out of St. Louis, has spread the injunction against the bailout nationally.

Just this morning, Elizabeth Warren was whining about how Biden had the authority to “cancel” these student loans.


“Republican officials”? A judge that was appointed by Donald Trump is a “Republican official” now? Warren and Schumer and company wanted to get their way, and they are blaming Judge Mark Pittman for blocking their long-cherished dream of simply waving a magic wand and making student loan debt go *POOF*.

Well, the Biden administration appealed the decision up the ladder, and the Eighth Circuit Court of Appeals just told them no.

Monday’s decision by the appeals court came after six GOP-led states argued in a lawsuit that the loan relief program threatens their future tax revenues, and that the plan circumvents congressional authority.”

“The injunction will remain in effect until further order of this court or the Supreme Court of the United States,” a three-judge panel of the appeals court said in its ruling.”

The injunction will put the program on hold pending an appeal of a lower court ruling that had allowed the debt relief program to go forward. The Biden administration could ask the Supreme Court to lift the injunction.”

The case went to the Eighth Circuit in St. Louis because one of the six states suing to stop the bailout was Missouri.

The appeals court said that Missouri had shown a likely injury in fact from the program, pointing out that a major loan servicer headquartered in the state, the Missouri Higher Education Loan Authority, or MOHELA, would lose revenue under the plan. Missouri’s state treasury department receives money from MOHELA.”

“And since at least one party likely has standing, we need not address the standing of the other states,” the panel concluded.”

“Whatever the eventual outcome of this case, it will affect the finances of millions of Americans with student loan debt as well as those Americans who pay taxes to finance the government and indeed everyone who is affected by such far-reaching fiscal decisions,” the panel said in its ruling.”

“As such, we approach the motion before us with great care.”

And the Biden administration knew that the program was in trouble after the ruling last week, and they stopped taking applications online. Cue the kids complaining.

Awww, look at that. Young people getting their first real lesson in never trusting the government. It just warms the heart. There goes all their “fun money” plans.

So naturally, what do the student loan debtholders want now? ANOTHER payment pause!

As lawsuit after lawsuit has held up Biden’s forgiveness plan from being implemented, millions of borrowers are in limbo, left frustrated and confused about what will happen to their debt and how much they will owe when repayments resume in 2023. They say the administration should delay repayments once again, to avoid even more complications when and if cancelation takes effect.”

Restarting student loan payments would not only lead to confusion for borrowers and servicing companies, it would put undue financial strain on borrowers who haven’t recovered from the dual shocks of the pandemic and decades-high inflation, says the Student Debt Crisis Center (SDCC), an advocacy organization.”

“For three years, borrowers have been a political punching bag facing uncertainty about the future of their student loans,” Natalia Abrams, president of SDCC, said in a statement. “The judge’s decision makes the future even more worrisome.”

This cycle is just going to keep spinning until the Supreme Court takes the case, which they will have to. The Biden administration knows that they are going to lose (the CDC’s eviction moratorium and the West Virginia v. EPA case from last term make the Court’s position pretty darn clear), but they are going to make sure that those who would have gotten the bailout money blame Republicans. Will Biden then announce another pause on restarting loan repayments? He is already planning on extending the national emergency over COVID-19 again, which means it would be pushed out until April 2023. It would be completely within Ron Klain’s Joe Biden’s plans to keep pushing pause until, say, January of 2025. The student loan debt “forgiveness” would be dead, but I can see the political ads now: “Joe Biden kept you from having to repay your student loans – vote for him, because (insert name of Republican candidate here) will make you start paying again!”

This mess is far from over, but with the ruling from the Court of Appeals, it now gets one step closer to the Supreme Court.

Featured image via succo on Pixabay, cropped, Pixabay license

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3 Comments
  • Cameron says:

    The chick graduating with 11K in debt is doing damn well for herself. That could be paid off in three years or less.

  • NTSOG says:

    ‘… borrowers who haven’t recovered from the dual shocks of the pandemic and decades-high inflation, says the Student Debt Crisis Center (SDCC), an advocacy organization.”’

    Apparently ‘borrowers’ are the only people affected by inflation and the Chinese virus. I thought it was pretty much the whole world. Silly me, but then many years ago I repaid my student loan incurred when I was studying for my MSc in Chicago. I have no sympathy for [spoiled/indulged] students who want to start their working lives by defaulting on their obligations to the taxpayers via the Government.

  • Lloyd says:

    Biden’s promise of a “free lunch” worked….It bought votes for the dems in the midterm elections. If the courts strike it down now…no problem; election is over. Biden won!

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