President Joe Biden’s student loan forgiveness policy was given a reprieve by Supreme Court Justice Amy Coney Barrett, who refused to block it.
Barrett manages emergency requests from the 7th Circuit Court of Appeals. She shut it down without commenting or noting if it was referred elsewhere.
The Wisconsin Institute of Law and Liberty filed an emergency appeal on behalf of the Brown County Taxpayers Association. However, the federal government claimed that they were not able to make the request.
On Thursday, a federal judge rejected a challenge by six Republican-led states to the forgiveness program. U.S. District Judge Henry Autrey of St. Louis stated that the states did not have the standing to sue. The Nebraska attorney general’s office spokesperson said that they will appeal the decision.
Biden announced in August that it would partially forgive student loans. This drew criticism from those who were owed the debt, as well as the burden on the taxpayer. Biden’s administration argued that the program was possible because of the emergency caused by the coronavirus pandemic.
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The federal government can begin to forgive the loans as soon as this weekend.
Critics of Biden’s loan forgiveness program claim he is acting in violation of the Constitution. They also say that he does not have the power to act without Congress voting. To boost the economy, his left-leaning critics have asked him to forgive all student loans.
Rich Eisenberg, of the Wisconsin Institute for Law and Liberty, stated that “it simply shouldn’t be the case for the president of the United States to unilaterally decide to spend 4% from the country’s gross national product without clear congressional authorization.”
The Congressional Budget Office reported that student loan forgiveness could be as costly as $400 billion.