President Joe Biden's administration on Thursday asked a federal appeals court to intervene in a legal battle over its $400 billion student loan forgiveness program – the latest development in a case that appears destined for the Supreme Court.
In the 5th Circuit case, U.S. District Judge Mark Pittman ruled Nov. 10 that the debt relief effort violated the law and he blocked its implementation nationwide. The suit was filed by the conservative-leaning Job Creators Network Foundation, which describes itself as"a nonpartisan organization founded by entrepreneurs who believe the best defense against bad government policies is a well-informed public.
"In this country, we are not ruled by an all-powerful executive with a pen and a phone," Pittman wrote."Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government.
Biden signed an executive order in August to grant the debt forgiveness, fulfilling a campaign promise sought by young voters and progressives. The president created the debt relief plan under the HEROES Act, which was passed after 9/11 sparked an American-led military campaign against terrorism. The act gave the administration authority to forgive student loan debt in association with military operations or national emergencies. The White House cited the COVID-19 pandemic as the national emergency to invoke invoking the law.
Under the president's plan, borrowers would be eligible for up to $10,000 or $20,000 in debt relief, depending on their income and whether they received a Pell Grant in college. Borrowers must earn less than $125,000 a year or reside in households that make no more than $250,000. As many as 40 million people would qualify for Biden's plan, and some would see their entire balance erased.
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