Like many critical thinkers predicted, Biden's student loan forgiveness program is not panning out as the White House marketed to college-indebted voters.
While the administration's intention was to simply distribute billions to Americans who willingly signed up for debt, the plan to slash off a large chunk of student loans has come to a swift halt due to a lawsuit filed by six states: Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina.
A federal judge in Missouri first dismissed the case, but then the 8th Circuit Court of Appeals issued a stay upon an emergency request from the six states, ultimately barring the administration from beginning to disburse funds.
As COSA reported back when these states first stood up to this clear abuse of power, the people are much more respected and represented on a state versus federal level.
This debt forgiveness plan will cost taxpayers an estimated $400 billion over the next 30 years. This is not forgiving loans, this is transferring the balance.
If leftists truly cared about repealing loans, universities would simply wipe away the balance due. But these institutions are not going to stop raising tuition prices and getting rich themselves.
Over the weekend, Biden falsely claimed that the plan was passed by Congress. "I got it passed by a vote or two," he lied during an interview. In reality, he obtained no approval from the legislative branch. Biden's scheme was only made possible through the pandemic national emergency and the HEROES Act of 2003 – a bill that was passed in response to the 9/11 attacks.
The Friday decision to temporarily hold the forgiveness of loans, which was set to begin Sunday, will allow the states to argue why they believe the executive branch has no power to cancel loans.
Convention of States advocates for power to be with the states, which ultimately means more individual rights.
Now, it will be up to the federal appeals court to decide if the program is constitutional after the case plays out.
Still, the White House is accepting applications and encouraging Americans to apply.
"We are pleased the temporary stay has been granted," Nebraska Attorney General Doug Peterson said in a statement. "It’s very important that the legal issues involving presidential power be analyzed by the court before transferring over $400 billion in debt to American taxpayers.”
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