Student loans

Federal judge strikes down Biden administration’s student debt cancellation plan

A Texas federal judge on Thursday overturned the Biden administration’s decision student debt cancellation planjeopardizing a key administrative priority that would have canceled up to $20,000 in student loans for tens of millions of borrowers.

The Biden administration’s plan is an “unconstitutional exercise of congressional legislative power” that also failed to follow normal regulatory processes, Northern District of Texas Judge Mark Pittman wrote in a 26-page opinion.

“No one can plausibly deny that this is either one of the greatest delegations of legislative power to the executive or one of the greatest exercises of legislative power without congressional authority in the history of the United States,” said Pittman, a former President donald trump wrote.

The Justice Department will appeal the verdict, a spokeswoman said. The White House did not immediately respond to a request for comment.

Two borrowers, supported by the Job Creators Network, a conservative group, were granted standing because they did not qualify for the program. One applicant had private student loans that were not eligible for forgiveness, while the other was not a Pell Grant recipient, meaning he was not eligible for an additional $10 forgiveness. 000 for which only Pell Grant recipients are eligible. The court ruled that they had been deprived of their right to express their disagreement with the contours of the program through the usual regulatory process.

An expanded version of this report appears on

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