{"id":1669591,"date":"2022-10-03T08:22:39","date_gmt":"2022-10-03T12:22:39","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1669591"},"modified":"2022-10-03T08:23:00","modified_gmt":"2022-10-03T12:23:00","slug":"biden-student-debt-bailout-faces-new-hurdles","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-student-debt-bailout-faces-new-hurdles\/","title":{"rendered":"Biden Student Debt Bailout Faces New Hurdles"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbiden-student-debt-bailout-faces-new-hurdles%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1669591&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><\/div>\n<div class=\"RichTextArticleBody\">\n<div class=\"RichTextArticleBody-body\">\n<div class=\"Enhancement\">\n<div class=\"Enhancement-item\"><\/div>\n<\/p><\/div>\n<p><span class=\"ArticlePage-articleBody-firstLetter\">P<\/span>resident <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/joe-biden\">Joe Biden<\/a> will need to survive legal scrutiny to deliver on his <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/student-loans\">student loan<\/a> campaign promise ahead of the midterm elections. <\/p>\n<p>Biden <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/biden-mass-student-loan-forgiveness-program\">announced<\/a> in August that he&#8217;d &#8220;cancel&#8221; up to $20,000 in student debt for millions of borrowers, a program that is estimated to cost <a class=\"Link\" href=\"https:\/\/www.crfb.org\/blogs\/new-student-debt-changes-will-cost-half-trillion-dollars\">$500 billion<\/a>. But with two <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/restoring-america\/fairness-justice\/lawsuits-mount-on-bidens-loan-plan\">lawsuits<\/a> <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/restoring-america\/community-family\/six-gop-states-sue-biden-administration-over-student-debt-forgiveness-plan\">filed<\/a> arguing the program is illegal, it all hangs in the balance with just weeks to go before voters decide who <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/midterms\">controls Congress<\/a> for the next two years. <\/p>\n<p><b><a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/restoring-america\/faith-freedom-self-reliance\/bidens-next-student-loans-move-could-place-billions-more-in-debt-on-taxpayers\">BIDEN&#8217;S NEXT STUDENT LOANS MOVE COULD PLACE BILLIONS MORE IN DEBT ON TAXPAYERS<\/a><\/b> <\/p>\n<p>&#8220;The student loans relief program is going to help tens of millions of people. Ninety percent of folks who are on that program are making under $75,000 a year,&#8221; White House press secretary <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/karine-jean-pierre\">Karine Jean-Pierre<\/a> said when asked about one of the lawsuits. &#8220;Opponents of the Biden-Harris administration student loan plan are trying to stop it because they know it will provide much-needed relief for working families.&#8221; <\/p>\n<p>Those filing suit make a different claim \u2014 that the program violates the Constitution. They argue that only Congress has the power to set monetary policy, that the pandemic <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/biden-seen-as-flip-flopping-on-the-pandemic\">no longer qualifies<\/a> as a national emergency giving the president expanded powers, and that the program also violates the <u><a class=\"Link\" href=\"https:\/\/www.law.cornell.edu\/wex\/administrative_procedure_act\">Administrative Procedure Act<\/a><\/u>, which lays out the method federal agencies should follow to ensure the executive branch\u2019s policies are well reasoned and explained. <\/p>\n<p>The biggest challenge may be finding someone with <a class=\"Link\" href=\"https:\/\/www.law.cornell.edu\/wex\/standing\">legal standing<\/a> to sue. <\/p>\n<p>The Pacific Legal Foundation filed the <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/restoring-america\/fairness-justice\/lawsuits-mount-on-bidens-loan-plan\">first<\/a> lawsuit last Tuesday. PLF, a libertarian law firm, sought a temporary restraining order because some borrowers would incur a tax bill if their loans were canceled automatically, in some cases raising the total amount they would pay. <\/p>\n<p>The <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/education-department\">Department of Education<\/a> responded to the suit by <a class=\"Link\" href=\"https:\/\/studentaid.gov\/debt-relief-announcement\/one-time-cancellation\">quietly updating<\/a> its policy to counter the plaintiff, and a judge <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/restoring-america\/fairness-justice\/indiana-court-wont-halt-biden-student-debt-cancellation-lawsuit\">rejected<\/a> the plaintiff&#8217;s claim. <\/p>\n<p>In the <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/restoring-america\/community-family\/six-gop-states-sue-biden-administration-over-student-debt-forgiveness-plan\">second<\/a> suit, six Republican-led states are suing on multiple grounds, including that some private banks that hold loans would be financially harmed. In response, the Department of Education again quietly <a class=\"Link\" href=\"https:\/\/www.bpr.org\/npr-news\/npr-news\/2022-09-29\/in-a-reversal-the-education-dept-is-excluding-many-from-student-loan-relief\">changed its guidance<\/a> to state that those borrowers no longer qualify. <\/p>\n<p>The Progressive Policy Institute&#8217;s Ben Ritz <a class=\"Link\" href=\"https:\/\/twitter.com\/BudgetBen\/status\/1575547835092967424\">tweeted<\/a> that the Biden administration is playing &#8220;an aggressive game of standing whack-a-mole.&#8221; <\/p>\n<p>The latest move could cut 4 million borrowers out of the program, though the White House told <a class=\"Link\" href=\"https:\/\/www.bpr.org\/npr-news\/npr-news\/2022-09-29\/in-a-reversal-the-education-dept-is-excluding-many-from-student-loan-relief\">NPR<\/a> the true number will be closer to 800,000. <\/p>\n<p>Another question is what effect, if any, the issue will have on the midterm elections if borrowers aren&#8217;t sure their loans will actually be forgiven. The move fulfills a Biden campaign promise and is thought to help <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/biden-aims-to-energize-young-voters-with-student-loan-pause\">energize young voters<\/a>. But interviewees for this story said the issue will have minimal effect in November. <\/p>\n<p>&#8220;I think the timing [of the lawsuit] by GOP attorney generals was odd,&#8221; said Colby College visiting politics instructor Sandy Maisel. &#8220;But I doubt it will have any effect on midterms.&#8221; <\/p>\n<p>Republicans are predicting a <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/restoring-america\/fairness-justice\/gop-predicts-blue-collar-backlash-biden-student-loans\">blue-collar backlash<\/a> from the sizable majority of people who do not have student loans, but there are conflicting polls on the program&#8217;s popularity. An Economist-YouGov <a class=\"Link\" href=\"https:\/\/today.yougov.com\/topics\/politics\/articles-reports\/2022\/09\/02\/americans-support-bidens-student-loan-debt-cancel\">poll<\/a> found that 51% of respondents support it, with 39% opposed. Meanwhile, a Cato Institute <a class=\"Link\" href=\"https:\/\/www.cato.org\/blog\/new-poll-76-americans-oppose-student-debt-cancellation-it-drives-price-college-64-oppose-it\">poll<\/a> found that 76% opposed it if it drives up the <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/restoring-america\/faith-freedom-self-reliance\/bidens-next-student-loans-move-could-place-billions-more-in-debt-on-taxpayers\">price of college<\/a>, as did 64% if it raises taxes. <\/p>\n<p>The popularity of the student debt transfer largely falls along partisan lines, which is why American Enterprise Institute senior fellow John Fortier says it&#8217;ll be a midterm wash. <\/p>\n<p>&#8220;When I look beyond the top line at the polling, I see that Democrats will like this and many Republicans won&#8217;t,&#8221; he said. &#8220;I don&#8217;t see this being a wedge issue.&#8221; <\/p>\n<p><b><a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/b> <\/p>\n<p>The White House holds that the student debt transfer is legal, though it so far hasn&#8217;t gone into much detail. Assistant press secretary Abdullah Hasan <a class=\"Link\" href=\"https:\/\/twitter.com\/AHasan46\/status\/1575551361181446145?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1575551363765145600%7Ctwgr%5E83e0b6f7381d94496eeb6c8c10000c60e8d91a9e%7Ctwcon%5Es2_&amp;ref_url=https%3A%2F%2Fwww.washingtonexaminer.com%2Frestoring-america%2Fcommunity-family%2Fsix-gop-states-sue-biden-administration-over-student-debt-forgiveness-plan\">said<\/a> the White House is &#8220;lawfully giving working and middle-class families breathing room.&#8221; <\/p>\n<p>Jean-Pierre was asked Friday if the two policy tweaks made so far would be the last and did not answer directly. <\/p>\n<p>&#8220;The Department of Education continues to explore alternative ways to provide relief to those borrowers with commercially held loans,&#8221; she said. &#8220;I do want to say that when you think about what we\u2019re trying to do, right, we\u2019re trying to give relief to everyday Americans.&#8221;<\/p>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>President Joe Biden will need to survive legal scrutiny to deliver on his student loan campaign promise ahead of the midterm elections.<\/p>\n","protected":false},"author":1,"featured_media":1669593,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1669591","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1669591","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1669591"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1669591\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1669593"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1669591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1669591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1669591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}