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Tipsheet

Federal Judge in Texas Blocks Biden's Student Loan Handouts

AP Photo/Susan Walsh

A U.S. Judge in Texas struck down President Joe Biden’s plan to give millions of student debt borrowers up to $20,000 for Pell Grant recipients and $10,00 for those who borrowed money using federal student loans.

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"Whether the Program constitutes good public policy is not the role of this Court to determine. Still, no one can plausibly deny that it is either one of the largest delegations of legislative power to the executive branch or one of the largest exercises of legislative power without congressional authority in the history of the United States,” U.S. District Judge Mark Pittman wrote in a statement. 

Pittman said that Biden’s student loan forgiveness program usurped Congress's power to make laws.

“In this country, we are not ruled by an all-powerful executive with a pen and a phone. Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government,” Pittman wrote, adding “the Court is not blind to the current political division in our country. But it is fundamental to the survival of our Republic that the separation of powers as outlined in our Constitution be preserved.”

The president of Jobs Creators Network, Elaine Parker, praised the court’s Thursday night decision. 

"The court has correctly ruled in favor of our motion and deemed the Biden student loan program illegal. The judge criticized the Biden Administration program, calling it 'one of the largest exercises of legislative power without congressional authority in the history of the United States.' This ruling protects the rule of law which requires all Americans to have their voices heard by their federal government," Parker said. 

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Parker continued to call out Biden’s program, saying that it would have nothing to do with the root cause of the students not being able to afford school tuition. 

“This attempted illegal student loan bailout would have done nothing to address the root cause of unaffordable tuition: greedy and bloated colleges that raise tuition far more than inflation year after year while sitting on $700 billion in endowments. We hope that the court’s decision today will lay the groundwork for real solutions to the student loan crisis,” Parker concluded.

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