A federal court in Missouri has blocked President Biden’s latest attempt to forgive nearly $500 billion in student loan debt.
U.S. District Judge John Ross, an Obama appointee, this week issued a temporary injunction halting part of the Department of Education’s rule that creates a new repayment option, the Savings on Valuable Education plan.
Under the latest rule revision, several changes would be made for student loan borrowers to shield more of an individual’s income that is calculated when determining monthly payments, lower the number of years for a borrower to qualify for loan forgiveness and shield the borrower from part of the accused interest.
But Judge Ross said part of the proposed revisions exceeds the authority of Education Secretary Miguel Cardona.
“Because Plaintiffs have shown that Missouri faces impending harm from any additional loan forgiveness under the Final Rule, the Court finds it necessary to enjoin Defendants from any further implementation of the Final Rule’s loan forgiveness provisions until this matter can be fully litigated,” the judge wrote.
The injunction, which was issued Monday, keeps the plan from taking effect on July 1.
Missouri Attorney General Andrew Bailey, a Republican, said the Biden forgiveness plan would have cost taxpayers $475 billion.
“During my time in the United States Army, I swore an oath to protect the Constitution against enemies both foreign and domestic. I took a similar oath to uphold the Constitution when I was sworn in as Attorney General,” Mr. Bailey said in a written statement. “By attempting to saddle working Missourians with Ivy League debt, Joe Biden is undermining our constitutional structure. Only Congress has the power of the purse, not the President. Today’s ruling was a huge win for the rule of law, and for every American who Joe Biden was about to force to pay off someone else’s debt.”
Missouri was joined by Florida, Georgia, Arkansas, Oklahoma, North Dakota and Ohio in suing the Biden administration to block the implementation of the latest rule, saying it would actually cost taxpayers $45 billion more than Mr. Biden’s previous order attempting to forgive student loan debt.
A federal judge in Kansas, Judge Daniel Crabtree, an Obama appointee as well, also blocked parts of the plan in a separate challenge, citing the president’s prior loss at the Supreme Court over previous forgiveness plans.
The Supreme Court shut down that attempt in 2022, ruling the feds couldn’t forgive some borrowers’ loans for people making under $125,000 or $250,000 as a married couple.
The high court’s 6-3 ruling said the executive branch — specifically, the secretary of education — does not have the authority to waive student debt.
• Alex Swoyer can be reached at aswoyer@washingtontimes.com.
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