Texas US District Judge Mark T. Pittman ruled in favor of the Network of Job Creators Foundation on Thursday, November 10. the washington post shared the following excerpt from Pittman:
“In this country, we are not ruled by an all-powerful executive with a pen and a phone. Instead, we are governed by a Constitution that establishes three distinct and independent branches of government.”
In October, the conservative advocacy organization filed its lawsuit on behalf of two borrowers: one who doesn’t qualify for $20,000 full debt relief and one who doesn’t.
Court documents show the Job Creators Network Foundation alleges the Biden administration violated federal procedures by denying borrowers the opportunity to provide public comment before releasing details of the student debt forgiveness program.
Elaine Parker, president of the Job Creators Network Foundation, praised the ruling immediately after Pittman issued it. for him Mail, she said this “protects the rule of law that requires all Americans to be heard by their federal government.”
He also said the Foundation believes Biden’s plan fails to address the high cost of tuition and other root causes of student loan debt. Parker said he hopes the court’s decision “lays the groundwork for real solutions to the student loan crisis.”
In September, the White House scaled back the student loan forgiveness program from its original form due to a lawsuit in Nebraska, ultimately excluding government-guaranteed private loans.
Originally, it was said that these types of loans were included in the program.
News of the student debt relief initiative originally came on the heels of the signing of the Inflation Cut Act of 2022, a sweeping tax and climate bill that passed along partisan lines without the support of a single Republican congressman.
An official White House fact sheet shared details about Biden’s plan, which is intended to eradicate $10,000 in student loan debt for those without Pell Grants and earn less than $250,000 per year for couples filing jointly and $125,000 per year for others . Those who meet the income guidelines and receive federal Pell Grants may receive $20,000 debt forgiveness.
The White House noted that nearly a third of all borrowers, particularly those in vulnerable populations, have debt but do not have a grade to prove it.
Multiple states, including Indiana and Mississippi, have already ruled that any forgiven student loan debt will be taxable at the state level.
The Justice Department plans to appeal Pittman’s decision.
What do you think about the ruling of federal judge Pittman?
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