{"id":1758033,"date":"2022-12-01T08:35:21","date_gmt":"2022-12-01T13:35:21","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1758033"},"modified":"2022-12-01T10:03:57","modified_gmt":"2022-12-01T15:03:57","slug":"bidens-student-debt-bailout-suffers-new-legal-blow-appeals-court-rejects-request-to-reinstate-program","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-student-debt-bailout-suffers-new-legal-blow-appeals-court-rejects-request-to-reinstate-program\/","title":{"rendered":"Biden\u2019s Student Debt Bailout Suffers New Legal Blow \u2013 Appeals Court Rejects Request to Reinstate Program"},"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\">32<\/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%2Fbidens-student-debt-bailout-suffers-new-legal-blow-appeals-court-rejects-request-to-reinstate-program%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=1758033&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--><p>A federal appeals <a href=\"https:\/\/www.theepochtimes.com\/t-court\">court<\/a> has rejected the Biden administration\u2019s bid to freeze a Texas judge\u2019s ruling that President <a href=\"https:\/\/www.theepochtimes.com\/t-joe-biden\">Joe Biden<\/a>\u2019s plan to cancel <a href=\"https:\/\/www.theepochtimes.com\/t-student-loan\">student loan<\/a> debt was illegal.<\/p>\n<p>In a Nov. 30 ruling, the New Orleans-based 5th U.S. Circuit Court of Appeals denied the Biden administration\u2019s request to put on hold a judge\u2019s Nov. 10 order vacating the $400 billion student debt relief program in a lawsuit brought forward by conservative advocacy group Job Creators Network Foundation (JCNF).<\/p>\n<p>\u201cThe Fifth Circuit correctly rejected the Biden administration\u2019s attempt to reinstate the student loan bailout pending appeal,\u201d JCNF president Elaine Parker said in a statement.<\/p>\n<p>\u201cDespite the administration being unlikely to prevail on the merits of this case, it had hoped to allow the program to move forward so that it could get money out the door to debtors and claim victory,\u201d she continued.<\/p>\n<p>Parker added that only by succeeding on appeal and permanently blocking Biden\u2019s student debt bailout will the JCNF consider its initiative a success, adding that the advocacy group will continue to \u201cstrongly fight the Biden administration\u2019s attempt to restart its illegal student loan bailout program.\u201d<\/p>\n<p>The White House had no immediate comment but the administration has said that if the 5th Circuit declined to halt the Texas judge\u2019s order blocking the student debt wipeout, it would ask the U.S. Supreme Court to intervene.<\/p>\n<h2>\u2018Erroneous Injunction\u2019?<\/h2>\n<p>The decision by\u00a0Fort Worth, Texas-based U.S. District Judge Mark Pittman was one of two nationally that has prevented the Department of Education from pressing ahead with student debt relief to millions of borrowers.<\/p>\n<p>The second was a Nov. 10 decision by the St. Louis-based U.S. Court of Appeals for the 8th Circuit, which froze Biden\u2019s debt forgiveness plan, prompting the federal government to stop receiving applications.<\/p>\n<p>Following the 8th Circuit court\u2019s decision, the Biden administration <a href=\"https:\/\/www.theepochtimes.com\/white-house-files-supreme-court-emergency-appeal-to-reinstate-student-debt-program_4872316.html\">filed an emergency appeal<\/a> with the Supreme Court,\u00a0seeking to overturn the ruling and reinstate the student loan forgiveness scheme.<\/p>\n<p>After the Biden administration filed the appeal, a coalition of Republican-led states <a href=\"https:\/\/www.theepochtimes.com\/gop-led-states-ask-supreme-court-to-keep-bidens-student-loan-wipeout-frozen_4883692.html\">petitioned the Supreme Court<\/a> to reject the appeal and keep the bailout scheme frozen until litigation around it is resolved.<\/p>\n<p>In its filing to the Supreme Court (<a href=\"https:\/\/s3.documentcloud.org\/documents\/23314019\/student-debt-relief-appeal-to-supreme-court.pdf\">pdf<\/a>), the Biden administration argued that the 8th Circuit court\u2019s \u201cerroneous injunction\u201d would lead to a number of harms, including leaving \u201cmillions of economically vulnerable borrowers in limbo.\u201d<\/p>\n<figure id=\"attachment_4686998\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/Cardona-Biden-GettyImages-1417742034-e1661374233741-1200x721-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-large wp-image-4686998\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/Cardona-Biden-GettyImages-1417742034-e1661374233741-1200x721-1.jpg\" alt=\"Biden and Cardona\" width=\"640\" height=\"385\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-4686998\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/Cardona-Biden-GettyImages-1417742034-e1661374233741-1200x721-1.jpg\" alt=\"Biden and Cardona\" width=\"640\" height=\"385\" \/><\/noscript><\/figcaption><\/a> President Joe Biden (L), joined by Education Secretary Miguel Cardona, speaks on student loan debt in the Roosevelt Room of the White House on Aug. 24, 2022. (Alex Wong\/Getty Images)<\/figure>\n<p>The administration also suggested in the filing that the Supreme Court could bypass the 8th Circuit court and hear the case on an expedited basis. It also cited the national emergency declared because of the COVID-19 pandemic and provisions in the Heroes Act as justification for Biden\u2019s executive decision to provide student debt relief.<\/p>\n<p>But the GOP-led states\u2014Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina\u2014said in their Supreme Court petition that Biden\u2019s request to lift the freeze is not justified by any \u201cemergency or imminent harm\u201d while lifting the injunction \u201crisks unleashing on the States a wave of harms that could not be undone.\u201d<\/p>\n<p>The states also challenged the Biden administration\u2019s rationale of using the COVID-19 pandemic as justification for the student loan wipeout scheme. They accused the Biden administration of relying \u201con the COVID-19 pandemic\u201d as \u201ca pretext to mask the President\u2019s true goal of fulfilling his campaign promise to erase student-loan debt.\u201d<\/p>\n<p>The GOP-led states argued that the Biden administration is trying to connect the debt cancellation to the pandemic \u201cby citing current economic conditions supposedly caused by COVID-19.\u201d<\/p>\n<p>\u201cBut those conditions are not directly attributable to the pandemic,\u201d they said, arguing that the Biden administration has failed to adequately link the debt wipeout to a national emergency.<\/p>\n<h2>Student Debt Repayment Moratorium Extended<\/h2>\n<p>The Biden administration has announced that it will extend its moratorium on\u00a0student loan payments through the middle of next year, as the program faces court battles.<\/p>\n<p>After student loan payments were put on hold in early 2020 under the Trump administration during the pandemic, payments were slated to resume on Jan. 1, 2023.<\/p>\n<p>The Biden administration <a href=\"https:\/\/www.theepochtimes.com\/biden-administration-to-extend-student-loan-debt-repayment-freeze-amid-court-battles_4880033.html\">announced on Nov. 22<\/a> that it would extend the moratorium through June 30, 2023.<\/p>\n<p>\u201cWe\u2019re extending the payment pause because it would be deeply unfair to ask borrowers to pay a debt that they wouldn\u2019t have to pay, were it not for the baseless lawsuits brought by Republican officials and special interests,\u201d Education Secretary Miguel Cardona said in a statement, claiming the lawsuits filed against the debt program are \u201ccallous efforts.\u201d<\/p>\n<p>Interest rates will remain at zero percent until repayments start under the plan. Under an earlier extension announced in April, people who were behind on payments before COVID-19 lockdowns and stay-at-home orders would\u00a0automatically be put in good standing.<\/p>\n<p>Officials have said that around 26 million people already have applied for debt relief, and 16 million have been approved.<\/p>\n<p>The debt forgiveness plan announced in August would cancel $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, would get an additional $10,000 in debt forgiven, for a total of $20,000.<\/p>\n<p><em>Jack Phillips and Reuters contributed to this report.<\/em><\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-tom-ozimek\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/WEB_TomOzimek-_1.jpg\" alt=\"Tom Ozimek\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Tom Ozimek is a senior reporter for The Epoch Times. He has a broad background in journalism, deposit insurance, marketing and communications, and adult education.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A federal appeals court has rejected the Biden administration\u2019s bid to freeze a Texas judge\u2019s ruling that President Joe Biden\u2019s plan to cancel student loan debt was illegal.In a Nov.<\/p>\n","protected":false},"author":1,"featured_media":1750439,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1758033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1758033","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=1758033"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1758033\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1750439"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1758033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1758033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1758033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}