(FamilyConserationPAC.com) – The Biden administration suffered a stunning defeat on Monday after a federal appeals court temporarily blocked the student loan forgiveness program.
A three-judge panel on the U.S. Court of Appeals for the 8th Circuit unanimously ruled the debt forgiveness action would cause severe irreversible economic impacts.
The panel wrote,
“The equities strongly favor an injunction considering the irreversible impact the Secretary’s debt forgiveness action would have compared to the lack of harm an injunction would presently impose.
Among the considerations is that collection of student loan payments and accrual of interest on student loans have both been suspended.”
Elaine Parker on the @JobCreatorsUSA lawsuit against Biden's student loan handout pic.twitter.com/0WJTL8fKPg
— Neil Cavuto (@TeamCavuto) November 11, 2022
If passed, Biden promises to forgive $10,000 in federal student loan debt for anyone making under $125,000 annually. Lower-income families making less or any Pell Grant recipients would qualify for a $20,000 loan forgiveness.
The policy has been touted as problematic and has drawn numerous legal challenges. The Congressional Budget Office (CBO) has estimated it will cost around $400 billion over 30 years.
The panel comprised two Trump-appointed judges and one President George W. Bush appointed.
According to reports, the conservative states of Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina considered the ruling a significant win.
The states argued they were harmed because they could not collect on student loans or interest.
The Biden regime plans to appeal the judge’s ruling to the 5th Circuit U.S. Court of appeals, arguing the policy is authorized by the 2003 federal law known as the Higher Education Relief Opportunities for Students Act.
The federal law was used by both President Trump and the Biden regime to enact student debt policies during the COVID-19 pandemic.
This is a developing story.
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