Biden may extend student loan payment pause again with court forgiveness plan
The White House is reportedly considering extending the student loan payment pause again, currently due to expire at the end of the year, as President Joe Biden’s plan to forgive up to $20,000 in student debt for borrowers is challenged by Republicans in court.
To to The Washington PostTwo people with knowledge of the matter say White House officials are in early talks about a possible extension of the hiatus, though no decisions have been made and it’s unclear if Biden was involved in the talks.
“As the legal vulnerability has become more apparent, the White House has made firmer plans to extend the loan repayment moratorium,” a source said. “The extension that we are likely to see is intended to ensure that the rug is not pulled from under borrowers’ feet, and not a perpetual replacement for loan forgiveness.”
When Biden announced that In August, he said his administration would extend the payment pause “one last time” to December 31 to forgive $20,000 of debt for Pell Grant recipients or $10,000 for debtors making less than $125,000 a year earn.
But as a result of a lawsuit by six Republican-run states, the plan was blocked by Texas federal judge Mark Pittman last week and was temporarily barred by a restraining order several Republican nominations Judges in the 8th Circuit Court of Appeals this week.
It is likely that the plan will end up in the Supreme Court. From then on, the fate of the plan is uncertain. However, whether or not the plan is struck down by the Conservative-dominated Supreme Court, it could be months before a decision is made.
If the moratorium is not extended, borrowers could be left in limbo, unsure whether to repay the loans when they could be called anyway, or risk defaulting if the plan ultimately expires court is nullified.
Debt relief advocates say extending the moratorium is an absolute minimum step Biden can take in response to the court decisions.
“For three years, borrowers have been a political punching bag faced with uncertainty about the future of their student loans. The judge’s decision makes the future even more worrying.” said Natalia Abrams, president of the Student Debt Crisis Center in an opinion. “President Biden must continue to pause payments going forward to provide financial stability and peace of mind to 40 million Americans.”
The debt collective says Biden has several ways to ease borrowers. You called the President extend the moratorium indefinitely and say he can Cancel student debt through alternative legal channels to circumvent the current legal challenge. The group also says it can and should simply ignore Pittman’s ruling because student debt relief is a political decision that shouldn’t be subject to court decisions in the first place.
“The problem is not legal authority [to cancel student debt]. The agency is built on solid foundations,” according to the Debt Collective wrote on Twitter on Monday. “The problem is that the courts are rigged. Right-wing judges take sides in political debates that no one elected them to resolve. Biden has to ignore them.”
In fact, legal experts have pointed out that Pittman’s arguments contained enormous and bizarre shortcomings.
Pittman openly admitted that he did not know the basic principles of the cancellation program, objected his own arguments that the plaintiffs recruited by the GOP for the lawsuit suffered harm as a result of the plan, and likened Congress to giving the Executive Branch power to forgive student debt to the 1933 Act that gave Adolf Hitler power and the rise to the NSDAP.
Some legal experts have questioned the fact that Pittman even took up the case — eventually any other challenge brought by conservative Challenging the plan was rejected by the courts after being designated by judges as a matter not to be brought before the judiciary in the first place.
“[O]Objections to the Biden program represent the classic type of ‘general complaint’ that the Supreme Court has long held that federal courts do not have the constitutional authority to resolve.” wrote CNN Legal analyst Steve Vladeck. When judges judge based on their prejudices and not established judicial roles, Vladeck wrote, “the courts do not act as courts; They only take sides in political debates that nobody elected them to solve.”