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Tipsheet

Court Rules Against the Biden Admin's Request to Reinstate Student Loan Bailout

AP Photo/Susan Walsh

The Court of Appeals ruled against the Biden Administration’s request to reinstate the student loan bailout. 

On Wednesday, the U.S. Court of Appeals for the Fifth Circuit rejected President Joe Biden’s $400 billion student loan forgiveness program which he appealed following a judge’s ruling to put it on pause. 

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This is the latest setback for Biden’s hefty plan. 

This comes after the federal government requested to temporarily reverse a lower court order that blocked the rollout of the plan.

The plan will stay paused while the administration appeals an order from a Texas judge that declared the debt relief proposal unlawful after a three-judge panel in New Orleans ruled against the program. 

In response, the Biden Administration has already extended the student debt loan payment until June 30, 2023. 

The lawsuit, which was filed by Job Creator’s Network, vowed to continue to fight against Biden’s multi-billion plan that is fueling the country’s recession. 

“The Fifth Circuit correctly rejected the Biden administration's attempt to reinstate the student loan bailout pending appeal,” Elaine Parker, President of JCN said, adding “despite the administration being unlikely to prevail on the merits of this case, it had hoped to allow the program to move forward so that it could get money out the door to debtors and claim victory. The Fifth Circuit's ruling today prevents this scenario from occurring and preserves the opportunity for real solutions to the underlying student debt problem. JCNF will continue to fight against this unprecedented, illegal executive overreach at the Supreme Court, if necessary.” 

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Since October, court orders have blocked any student debt relief from happening. 


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