Student Loan Update: Biden Admin Puts Loans on Hold After Court Ruling
NewsweekJul 20
Appeals Court Blocks Remaining Provisions of Biden Student Debt Forgiveness Plan
Above: US President Joe Biden (L) and Secretary of Education Miguel Cardona (R) leave after Biden spoke about student debt relief at the South Court Auditorium at Eisenhower Executive Office Building on October 17, 2022, in Washington, DC. Image copyright: Alex Wong/Staff/Getty Images News via Getty Images
The Facts
The US 8th Circuit Court of Appeals granted a motion by Republican-led states to block the remaining pieces of the Biden administration's student loan forgiveness plan.
A district judge last month stopped short of blocking the Saving on a Valuable Education (SAVE) Plan entirely. This motion, brought forth by a group of Republican attorneys general, would block the rest.
The Spin
Republican narrative
The student debt relief plan is a bad policy that was rammed through without any due process. Indeed, It was so bad that two judges appointed by Obama had to put a stop to it for its unconstitutional nature. Loan forgiveness is a handout to the upper classes and punishes those who were diligent and paid their loans off in time. Hopefully, the courts will finally stick a fork in this unconstitutional plan soon.
Democratic narrative
These GOP-led states have been relying on bad logic to try and trash the SAVE Plan, as analysis has shown that states won't lose revenue in the aggregate specifically because of the plan. These states haven't let a lack of injury stop them from using the courts to make it harder for millions of hardworking Americans to discharge burdensome debt that is keeping them from financial security.