By Gene Johnson
Associated Press
A judge in Texas on Thursday blocked President Joe Biden's plan to offer millions of borrowers up to $20,000 each in federal student loan forgiveness, a program already on hold while a federal appeals court in St. Louis is considering a separate lawsuit from six states challenging it.
Fort Worth District Court Judge Mark Pittman, an appointee of former President Donald Trump, said the program took away the power of Congress to make law.
"We are not governed in this country by a full-powered executive with a pen and telephone. Rather, we are governed by a Constitution that establishes three distinct and independent powers," Pittman wrote.
Howard University students Aiden Thompson and Sydney Stokes rallied in late August with other student loan debt activists outside the White House a day after President Biden announced the plan.
The Washington Post via Getty Im / The Washington Post via Getty Images
And he added: "
The court is not blind to the current political division of our country.
But it is essential for the survival of our Republic that the separation of powers be preserved as set forth in our Constitution."
The debt forgiveness plan would cancel $10,000 in student loan debt for those earning less than $125,000 or households with incomes less than $250,000.
Pell Grant recipients, who typically demonstrate greater financial need, would get an additional $10,000 of debt forgiveness.
Start the enrollment process for those seeking forgiveness of their student debt
Oct. 17, 202200:55
The cancellation applies to federal loans for undergraduate and graduate studies, along with Parent Plus loans.
The U.S. 8th Circuit Court of Appeals had put the forgiveness plan on hold on October 21, while it studied an effort by the states of Nebraska, Missouri, Iowa, Kansas, Arkansas and South Carolina to block the Program.
Although the suspension temporarily prevented the Administration from paying off the debt,
the White House encouraged borrowers to continue applying for the aid,
stating that the court order does not prevent applications or their review.
[Student loan servicers should defer sending billing statements]
As of the end of October, more than 22 million students had applied for debt forgiveness.
The legal challenges have created confusion over whether students waiting to have their debt canceled will have to resume payments starting Jan. 1, when a pause caused by the COVID-19 pandemic expires.
[You can now ask for the cancellation of the student debt promised by Biden. This is the process]
Economists worry that many people have not yet recovered financially from the pandemic, saying that if borrowers waiting for debt cancellation are asked to make payments instead,
many could fall behind on bills and default .
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