Judge Temporarily Halts the Biden-Harris Student Debt Relief Plan
On Nov. 10, a Texas judge issued an order against the Department of Education (ED) in the Myra Brown, et al. v U.S. Department of Education et al. case.
The plaintiffs in the case argued that the debt relief plan violated the Administrative
Procedure Act by not seeking public comment on the plan and harmed two plaintiffs
who did not meet the eligibility requirements for debt relief. One plaintiff has
student loans that are now privately held and not eligible for forgiveness. The
second plaintiff was eligible for just $10,000 in debt forgiveness—not $20,000—because he did not receive a Pell Grant.
According to their compliant, “plaintiffs want an opportunity
to present their views to the Department and to provide additional comments on
any proposal from the Department to forgive student loan debts.” They believe
that it is “irrational, arbitrary and unfair” to exclude them from Student
Debt Relief Plan. The judge agreed with this argument and further believed that
the basis for the program itself was unconstitutional.
The order states that the program is based on “an unconstitutional
exercise” of Congress’s legislative power and the court declared the Biden
Harris Student Loan Debt Relief Plan unlawful and vacated the program. This order
prohibits ED from enforcing, applying or implementing the plan nationwide, which
effectively halts the Biden-Harris Student Debt Relief Plan. In response to the
order, ED has taken down the application for the Student Loan Debt Relief Plan while it appeals the decision.
There have been several lawsuits filed in an attempt to stop
the program. All but the Brown case and the State of Nebraska et al. v. Joseph R. Biden, Jr. et al. case
have been dismissed based on lack of standing. In the Nebraska case,
which was brought by Republican State Attorneys General, the Eighth Circuit Court
of Appeals issued a stay while it considers a motion from the states to block
the program. The stay ordered the Biden-Harris administration not to act on the
program while it considers the appeal. However, the stay did not halt the acceptance
of applications; it only prevented the program from actually moving forward with
cancelling the loans. This is why until the order in the Brown case was issued,
ED continued to accept applications.