A federal appeals court blocked one of Joe Biden’s student loan bailout programs.
The Fifth Circuit Court of Appeals on Thursday blocked Biden’s plan to cancel loans for borrowers who claim they were victims of ‘misleading information’ by colleges.
A three-judge panel – one Reagan appointee and two Trump appointees – said Biden’s program was ‘almost certainly unlawful.’
ABC News reported:
A Biden administration plan to provide student debt relief for people who say they were victims of misleading information by trade schools or colleges is “almost certainly unlawful” a federal appeals court said in a ruling blocking enforcement of the policy against a group of privately owned Texas institutions.
The 5th U.S. Circuit Court of Appeal ruling, dated Thursday, came in a court challenge filed by Career Colleges and Schools of Texas. The panel sent the case back to a lower court, saying the judge should issue an injunction against enforcement while the appeal continues.
At issue are rules that broadened existing policy, affecting students who borrowed money to attend colleges and universities that are determined to have misled them on matters such as whether their courses would actually prepare them for employment in their field or the likely salary they would earn upon obtaining a degree. According to the opinion, if a federal student loan is discharged under the policy, the government can seek reimbursement from the school accused of the misleading practices.
Biden has used a series of workarounds to circumvent the Supreme Court’s decision to strike down his student loan bailout program.
Last year the Supreme Court ruled 6-3 against Joe Biden’s student loan relief program so the Department of Education rolled out a workaround forbearance program to cancel $39 billion in student loans by counting non-payments as payments for a period of time.
Only it isn’t your typical forbearance program. Borrowers won’t have to pay back ‘missed’ payments or make up the difference of ‘reduced’ payments. No interest will accrue on any of the missed payments.
In January Biden unilaterally canceled another $5 billion in student loan debt for 74,000 borrowers in his latest vote-buying gimmick.
“The latest round of student debt cancelation brings the total amount canceled under Biden to $136.6 billion for more than 3.7 million Americans, according to the Department of Education. It comes after the U.S. Supreme Court blocked Biden’s initial student loan handout last year, which would have cost more than $400 billion.” Fox Business reported.
Joe Biden also announced he would cancel student loans for borrowers who took out less than $12,000 and have been in repayment for 10 years.
Biden recently bragged about forcing hardworking middle-class Americans to pay for other people’s student loans.
Biden falsely claimed his debt cancellation is free during a campaign in Vegas earlier this year.
Anybody with a basic understanding of economics knows this is a lie.
“It’s not costing people,” Biden said.
This is a lie. The debt is transferred to hardworking Americans who didn’t take out student loans.