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President Joe Biden’s student loan forgiveness scheme has been declared unlawful by a federal judge in Texas.
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On behalf of two debtors who weren’t eligible for debt relief, the Job Creators Network Foundation, a conservative organization, filed the case in October
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The Biden program was already suspended because of a different legal issue.
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White House press secretary Karine Jean-Pierre said in a statement that “we strongly disagree with the District Court’s verdict on our student debt relief program.” The Justice Department announced Thursday that it will appeal the case.
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Since the 8th US Circuit Court of Appeals placed an administrative stay on the program on October 21, the Biden administration has been prohibited from erasing any debt.
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Six Republican-led states filed that lawsuit, and the appeals court has not yet made a decision. On October 20, a lower court judge dismissed the lawsuit, concluding that the states lacked the authority to file the claim.
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Several further legal challenges to the scheme are being made against the Biden administration
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Elaine Parker, president of the Job Creators Network Foundation, said in a statement on Thursday that the decision “protects the rule of law, which requires that all Americans have their voices heard by their federal government.”
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Bernie Marcus, a significant supporter of Donald Trump and the former head of Home Depot, founded the advocacy group.
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Due to a pandemic-related benefit, payments on federal student loans have been suspended since March 2020. They’ll start up again in January.