The Department of Justice immediately appealed to the 5th US Circuit Court of Appeals. But that case will have to play out before the Biden administration can cancel any federal student loan debt under the program.
Under the rules of the program, eligible low- and middle-income borrowers can receive up to $10,000 of federal student loan forgiveness and up to $20,000 in cancellation if they also received a Pell grant while enrolled in college.The Texas decision "makes it more likely that the issue will ultimately go to the Supreme Court, though it is still too early to say," said Abby Shafroth, staff attorney at the National Consumer Law Center.
"We strongly disagree with the District Court's ruling on our student debt relief program," she said.The Biden administration has argued that Congress granted the secretary of education the power to broadly discharge student loan debt in a 2003 law known as the HEROES Act, which was passed in the wake of the September 11 terrorist attacks.
"In this country, we are not ruled by an all-powerful executive with a pen and a phone," he continued. "This ruling protects the rule of law which requires all Americans to have their voices heard by their federal government," said Elaine Parker, president of Job Creators Network Foundation, in a statement Thursday.Where do the other lawsuits stand?
The Biden administration has had several wins in court thus far, as plaintiffs have struggled to show they have standing to sue.
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