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Two temporary injunctions were filed on Monday against President Biden’s student loan forgiveness plan.
Two federal judges agreed with some red states that only Congress is authorized to erase student debt. Biden’s latest student loan cancellation scheme is part of the Saving on a Valuable Education (SAVE) repayment program. The new plan was set to take effect on July 1.
This is a win for Kansas and Missouri, the two states that led the lawsuits filed by multiple states to prevent the plan from going into effect this spring. The preliminary injunctions put the plan on hold.
Biden knows his blatant sop to young voters in an election year is unconstitutional. He brags about working around the Supreme Court’s ruling against it. Biden is transferring student debt repayments from students who took out the loans to taxpayers. The loan debt doesn’t magically disappear. Ordinary taxpayers are on the hook. The Kansas lawsuit stated that SAVE would transfer $156B in student loan debt to taxpayers. Missouri’s lawsuit claims that taxpayers would be on the hook to the tune of $475B over the next 10 years.
In Kansas, U.S. District Judge Daniel Crabtree ruled in a lawsuit filed by the state’s attorney general, Kris Kobach, on behalf of his state and 10 others. In his ruling, Crabtree allowed parts of the program that allow students who borrowed $12,000 or less to have the rest of their loans forgiven if they make 10 years’ worth of payments, instead of the standard 25.
