Biden-Harris Administration Keeps Breaking The Law To Buy Votes From College Grads
Despite SCOTUS's ruling in Biden v. Nebraska, the White House has proven it won’t let the law get in its way of making taxpayers pay student loans.Despite SCOTUS's ruling in Biden v. Nebraska, the White House has proven it won’t let the law get in its way of making taxpayers pay student loans.Biden's student loan repayment plan dealt another blow by federal court
Joe Biden's attempts to fulfill a major campaign promise to relieve student loan debt took another hit this week when a federal appeals court blocked the Saving on a Valuable Education program, better known as SAVE.
On a one-page, unsigned order issued on Thursday, the Eighth Circuit Court of Appeals granted the request of six Republican-led states, including Missouri, to suspend implementation of aspects of the SAVE program while the court considers a more permanent block favored by Republicans. A district judge had already blocked implementation of the other parts of the SAVE program in a ruling last month.
Supporters of SAVE, on the other hand, waxed histrionic that the order blocking the implementation of SAVE would upend people's lives, even though the program began offering debt relief only a few months ago.
Andrew Bailey, the Republican attorney general of Missouri who filed the emergency motion on behalf of the plaintiffs, celebrated the order as a "HUGE win" for everyday Americans. Bailey called SAVE "illegal" and claimed it was a backdoor means of saddling taxpayers — many of whom never went to college — "with half-a-trillion dollars in Ivy League debt."
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"I'm proud to lead from the frontlines on this. In Missouri, we believe in paying our debts and not burdening hardworking taxpayers. Today’s victory is a win for every hardworking American who pays their bills without leaning on their neighbors," Bailey added in a separate statement.
Supporters of SAVE, on the other hand, waxed histrionic that the order blocking the implementation of SAVE would upend people's lives, even though the program began offering debt relief only a few months ago.
"Today’s ruling from the 8th Circuit blocking President Biden’s SAVE plan could have devastating consequences for millions of student loan borrowers crushed by unaffordable monthly payments if it remains in effect," said a statement from Secretary of Education Miguel Cardona.
"This decision threatens the entire federal student loan system and will cause complete chaos and confusion," added a statement from Eileen Connor, president and executive director of the Project on Predatory Student Lending.
The Biden administration has tried to ease or outright cancel student loan debt for years after campaigning heavily on the issue in 2020. However, time after time, the courts have overruled many of those efforts. In June 2023, the Supreme Court struck down Biden's attempts to cancel up to $20,000 in loans for qualified borrowers.
SAVE was yet another means of trying to achieve a similar end. To date, more than 8 million people have enrolled in SAVE, and over 400,000 of them who had taken out no more than $12,000 originally had their entire debt eliminated. The appellate court order will not affect any debt cancellation that has already been given through the SAVE program.
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'String of reckless attempts': 130 Republicans urge Biden to abandon student debt 'forgiveness' plan
A group of 130 Republican lawmakers sent a letter on Friday to the United States Department of Education demanding the Biden administration reverse its federal student loan "forgiveness" plan that requires American taxpayers to foot the bill for student borrowers.
An April report from the Committee for a Responsible Federal Budget found that the administration's sweeping debt cancellations could add up to $750 billion to the national deficit.
Last year, the Supreme Court rejected the administration's attempt to unilaterally zero out federal student loan debt for borrowers. Since then, the White House has rolled out multiple smaller but similar programs through its Saving on a Valuable Education Plan, a new income-driven repayment plan that sets monthly payments based on borrowers' income.
'Backdoor attempt to enact 'free' college.'
In a letter to Department of Education Secretary Miguel Cardona, Republican lawmakers wrote, "The latest Notice of Proposed Rule Making (NPRM) proposed by your Department of Education (Department) on April 17, 2024, represents the latest in a string of reckless attempts to transfer as much as $1 trillion of student loan debt from those who willingly borrowed to those who did not or have already repaid their loans."
The proposed NPRM mentioned in the letter refers to a recent White House proposal "to provide targeted debt relief" by "modify[ing] the Department's existing debt collection regulations to provide greater specificity regarding certain non-exhaustive situations in which the Secretary may exercise discretion to waive all or part of any debts owed to the Department," according to a Federal Register filing. The rule would amend the Higher Education Act of 1965.
"We strongly urge you to withdraw it," the Republicans' letter read.
"The Biden administration describes this regulation as 'targeted relief,' yet the Department's own estimates show the opposite. This is even broader than the Department's first attempt: at an estimated price tag of $147 billion, taxpayers are being forced to take on the debt of nearly 28 million borrowers," the letter continued. "Moreover, while the Department likely does not wish to highlight how much their proposal would help the wealthy, outside estimates show that borrowers eligible for 'relief' under certain provisions in this proposal will have a typical income of over $300,000."
Republicans, led by House Committee on Education and the Workforce Chairwoman Virginia Foxx (R-N.C.), called the proposal "fiscally irresponsible" and a "backdoor attempt to enact 'free' college." The lawmakers accused the administration of "us[ing] borrowers as political pawns knowing full well these proposed actions are illegal."
Lawmakers contended that the Supreme Court had already ruled the White House's "Plan A" debt write-off unconstitutional. The administration's new strategy, "Plan B," is "almost double the cost of 'Plan A,'" they wrote.
"'Plan B' hinges on creating these extensive regulations based on scant statutory text written in 1965," the letter explained. "It is certain that drafters in 1965 through the last reauthorization in 2008, did not contemplate that these words would be used to cancel massive portions of student loan balances. This statute has no history of broad use by any previous Secretary and was previously deemed by this administration as less likely to hold up in court than 'Plan A.'"
Some of the other lawmakers to sign the correspondence to Cardona included Bill Cassidy (R-La.), Marsha Blackburn (R-Tenn.), Jim Banks (R-Ind.), Ted Cruz (R-Texas), Lindsey Graham (R-S.C.), Josh Hawley (R-Mo.), Mitch McConnell (R-Ky.), Lauren Boebert (R-Co.), and Mitt Romney (R-Utah).
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Biden's student loan debt 'forgiveness' plan could add up to $750 billion to national deficit: Report
The Biden administration's latest plan to wipe out federal student loan debt for millions of borrowers could add up to $750 billion to the national deficit, according to a Tuesday report from the Committee for a Responsible Federal Budget.
So far, the White House has announced $150 billion in so-called student loan "forgiveness" programs over the last year following the Supreme Court's June decision to reject unilateral loan cancellations. The previously rejected program would have wiped out $430 billion in borrower debt.
Since then, the Biden administration has ignored the court's ruling and enacted numerous similar but smaller programs to zero out federal student loan debt. Many of the cancellation announcements were rolled out through the White House's newest income-driven repayment program, Saving on a Valuable Education Plan, which sets monthly repayment amounts based on borrowers' incomes. According to the administration, roughly 8 million Americans are currently enrolled in SAVE. Over half of enrollees have a monthly payment of $0, and more than one million others pay less than $100 per month.
The Education Data Initiative reported an outstanding federal student loan debt balance of $1.602 trillion with 43.2 million borrowers. Federal loans account for 92.8% of all student loan debt, it noted.
The CRFB's report read, "Elements of the plan in today's proposed rule would cost nearly $150 billion, according to the Department of Education. However, this excludes a proposal to allow the Secretary of Education to cancel debt for those facing hardship or likely to default. Including this provision, we estimate the plan could cost $250 billion to $750 billion, depending on how the additional cancellation is designed."
The Biden administration's new plan would cancel accumulated interest for student loan borrowers with balances higher than the amount they initially borrowed. To cover these expenses, taxpayers would need to shell out $73 billion, CRFB estimated.
Borrowers in standard repayment who are eligible for cancellation but did not apply for the administration's program will also have their debt automatically wiped out. The nonprofit organization stated that would total another $9 billion.
Additionally, under the administration's plan, loans that have been in repayment for more than 20 to 25 years will be zeroed out, costing taxpayers $14 billion.
Borrowers who took out loans to participate in "low-financial-value programs" will see their outstanding account balances drop to zero. The CRFB estimates that it will cost $35 billion.
The administration will cancel debt from Federal Family Education Loans, costing another $17 billion.
Individuals "facing hardships" or likely to go into default will also be relieved of their debt. The CRFB estimated that this could cost anywhere from $100 billion to $600 billion.
"The Department of Education has estimated the first four components of the plan would cost $147 billion over a decade, with half the cost stemming from the cancellation of accumulated interest," the report stated.
The CRFB noted that the cancellation for hardships is "by far the most unclear and potentially the most costly part" of the administration's proposal, noting that it "could be both wide-ranging and ongoing."
The Biden administration has not clearly defined what constitutes an eligible hardship but mentions more than a dozen possible criteria, including household income, assets, total debt, current repayment status, age, disability, and health care expenses.
"In total, our $250 billion to $750 billion estimate for the total cost of the plan would be in line with the cost of the Administration's $400 billion blanket debt cancellation, which was ruled illegal by the Supreme Court. It would be on top of more than $600 billion of debt cancellation already enacted through unilateral executive action," the report read.
The CRFB warned that the sweeping debt cancellations would "put upward pressure on inflation and interest rates by supporting stronger demand."
Eighteen states filed two separate lawsuits against the Biden administration over its SAVE plan.
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Biden rolls out another $7.4B in student loan debt ‘forgiveness’ while lawsuits pile up
The Biden administration announced Friday plans to "cancel" another $7.4 billion in federal student loan debt for 277,000 borrowers, despite a growing pile of lawsuits.
According to the White House, the current administration has approved $153 billion in so-called student loan “forgiveness.” Some cancellations were rolled out as part of its Saving on a Valuable Education Plan, a new income-driven repayment plan that sets monthly payments based on borrowers’ income. Approximately 8 million borrowers are enrolled in the program, more than half of whom have had their monthly payments dropped to $0. More than 1 million others enrolled in the SAVE Plan pay less than $100 per month.
After the Supreme Court rejected Biden’s attempt to provide sweeping debt cancellations last year, the administration has ignored the ruling by announcing many smaller, similar plans to wipe out debt for borrowers. Following the court’s ruling, Biden reaffirmed his commitment to canceling student loan debt.
“This latest round of debt cancellation comes on the heels of President Biden announcing new plans that, if implemented, would cancel student debt for over 30 million Americans when combined with actions the Administration has taken over the last three years. This week’s announcements reinforce the President’s commitment to using every path available to deliver student debt relief to as many borrowers as possible through various actions,” the White House stated Friday.
The latest round of cancellations impacts borrowers enrolled in Biden’s SAVE Plan, other income-driven repayment plans, and individuals receiving Public Service Loan Forgiveness.
Republican lawmakers have slammed the administration’s plan, stating that it passes the debt along to American taxpayers. Over the last several weeks, Republican attorneys general have filed two separate lawsuits against the White House, claiming that the debt cancellations are illegal.
Kansas Attorney General Kris Kobach and 10 other states sued the administration in March, accusing Biden of ignoring the Supreme Court’s June ruling against debt cancellations.
The Biden administration’s Education Department responded to the complaint, stating, “The Department does not comment on pending litigation. However, Congress gave the U.S. Department of Education the authority to define the terms of income-driven repayment plans in 1993, and the SAVE plan is the fourth time the Department has used that authority.”
“The Biden-Harris Administration won’t stop fighting to provide support and relief to borrowers across the country – no matter how many times Republican elected officials try to stop us,” it added.
On Tuesday, an additional seven states, led by Missouri Attorney General Andrew Bailey, filed a separate lawsuit for the Biden administration’s attempts to circumvent the court’s decision.
Bailey called the programs Biden’s “embarrassing attempt to buy the 2024 election in direct violation of the law.”
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Biden’s student loan debt ‘forgiveness’ plan faces another lawsuit: ‘Embarrassing attempt to buy the 2024 election’
Seven more states filed another lawsuit on Tuesday againt the Biden administration over its continued attempts to circumvent the Supreme Court’s ruling against sweeping federal student loan debt handouts, Fox Business reported.
So far, 18 states have sued Biden for passing billions of dollars in student loan debt on to taxpayers.
The latest lawsuit, led by Missouri Attorney General Andrew Bailey, claims that Biden’s Saving on a Valuable Education Plan, also referred to as SAVE, is illegal.
According to the administration, SAVE is a new income-driven repayment plan that uses borrowers’ income to calculate a monthly payment. The program has “unique benefits that will lower payments for many borrowers.”
The White House has used the plan to roll out so-called debt cancellation for roughly 1 million Americans with at least $45.6 billion of debt.
The Supreme Court previously rejected the Biden administration’s plan to enact unilateral debt cancellations. The federal government has since announced many smaller, similar programs despite the court's decision.
The Biden administration reported that nearly 8 million borrowers are enrolled in the president’s SAVE plan, and 4.5 million now “have a monthly payment of $0.”
AG Bailey told Fox Business, “With the stroke of his pen, Joe Biden is attempting to saddle working Missourians with a half-trillion dollars in debt. The United States Constitution makes clear that the president lacks the authority to unilaterally ‘cancel’ student loan debt for millions of Americans without express permission from Congress.”
“The president does not get to thwart the Constitution when it suits his political agenda,” he continued. “I’m filing suit to halt his embarrassing attempt to buy the 2024 election in direct violation of the law. The Constitution will continue to mean something as long as I’m attorney general.”
“We beat his unlawful student loan plan in court last summer, so he quickly rolled out Plan B. Now that we’re challenging that, he’s panicked and is rolling out a Plan C. We will continue to watch him closely and take action whenever he’s overstepped his authority,” Bailey told Fox Business.
Arkansas, Florida, Georgia, North Dakota, Ohio, and Oklahoma joined Missouri in the newest lawsuit.
The complaint argued that the SAVE plan demonstrates “a long but troubling pattern of the President relying on innocuous language from decades-old statutes to impose drastic, costly policy changes on the American people without their consent.”
Arkansas Attorney General Tim Griffin told the news outlet, “President Biden has already lost on this question once, and he is refusing to follow the law. The Supreme Court could not have been clearer: President Biden cannot unilaterally cancel student debt and force taxpayers to bear the multibillion-dollar cost.”
Late last month, Kansas Attorney General Kris Kobach and 10 other states filed a similar lawsuit against the Biden administration, challenging its efforts to wipe out federal student loan debt, Blaze News previously reported.
“Not since the Civil War has a president told the Supreme Court, ‘Yeah you blocked me, but I’m gonna do it anyway,’” Kobach told Fox News Digital. “Biden is trying to twist federal law once again, and his new plan is just as illegal as the old plan.”
The Education Department responded to the initial lawsuit, telling the news outlet, “The Department does not comment on pending litigation. However, Congress gave the U.S. Department of Education the authority to define the terms of income-driven repayment plans in 1993, and the SAVE plan is the fourth time the Department has used that authority.”
“The Biden-Harris Administration won’t stop fighting to provide support and relief to borrowers across the country – no matter how many times Republican elected officials try to stop us,” the department added.
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