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Tipsheet

Biden Administration Moves Forward With Student Loan Bailout Preparations Despite Court Ruling

AP Photo/Carolyn Kaster

Education Secretary Miguel Cardona said on Saturday the administration is “moving full speed ahead” on its plans for student loan debt relief, despite a federal appeals court temporarily blocking the program.  

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“Amid some Republicans trying every which way to block the Biden Administration’s debt relief program, the department is moving full speed ahead with preparations for the lawful implementation of our program so we can deliver relief to borrowers who need it most,” Cardona wrote in a USA Today opinion piece. 

The order from the U.S. Court of Appeals for the 8th Circuit came after six GOP-led states challenged the legality of the loan “forgiveness” program.  

In a video message posted Saturday, Cardona said the administration “is not deterred” by the legal challenges. 

While the ruling prevents the administration from offering relief while the case is considered, White House Press Secretary Karine Jean-Pierre said it's not stopping the government from reviewing applications. 

President Biden, meanwhile, falsely claimed on Sunday that his student loan bailout was passed by Congress. 

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"It's passed," he said during a NowThis ‘Make Your Mark’ forum. "I got it passed by a vote or two."

In reality, the administration justified the program through the 9/11-era HEROES Act, which the Education Department claims "grants the Secretary authority that could be used to effectuate a program of targeted loan cancellation directed at addressing the financial harms of the COVID-19 pandemic." 


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