A federal judge in Texas declared President Joe Biden’s student loan forgiveness plan unlawful and vacated the program.
U.S. District Judge Mark Pittman issued the order in response to an October lawsuit filed by two plaintiffs against the U.S. Department of Education. Biden announced his plan in August, but another federal court last month issued a temporary stay blocking debt cancellation while legal issues raised in a joint suit by six states are reviewed.
Response from the white house
The White House said the U.S. Department of Justice has appealed the ruling.
“We will never stop fighting for hardworking Americans most in need – no matter how many roadblocks our opponents and special interests try to put in our way,” said White House Press Secretary Karine Jean-Pierre in a written statement.
Biden said his decision will lift a debt burden that prevents many from buying a home, starting a family or launching a business.
“I believe my plan is responsible and fair. It focuses the benefit on middle-class and working families. It helps both current and future borrowers and it will fix a badly broken system,” he said.
Critical Questions
The president press release says package intent was to remove up to $10,000 in federal student loan debt for borrowers with an annual income of less than $125,000. Or households with an annual income of less than $250,000. Pell Grant recipients would receive up to $20,000 in forgiveness.
However many critics are arguing that the administration never intended to provide relief through loan forgiveness. They cite the timing of the process was intentionally announced near midterm election with the understanding that the process would time out after the election.
Other Critics point out that ” Pell Grants” are grants and don’t need to be repaid. Noting that the Pell Grand add in to the forgiveness package was by design misleading.
Conservatives add the package is too costly for taxpayers and will worsen inflation.
Key numbers of student loan debt in Georgia:
1,639,600 — the number of borrowers who live in Georgia, which ranks seventh nationally.
$41,600 — the average borrower balance, which is third nationally, behind Washington, D.C., and Maryland.
15.4% — the percentage of Georgia residents with student loan debt.
9% — the percentage of Georgia borrowers in 2021 who had past-due accounts greater than 90 days. The national average is 8%.
70,700 — the increase in Georgia borrowers since 2016. Only Texas and Florida have had a larger increase in borrowers.
68,000 — the number of borrowers in Georgia who are 62 or older.
Sources: Federal Reserve Bank of New York Consumer Credit Panel/.
