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Biden’s Student Loan Handout Dealt Major Legal Blow

A federal appeals court temporarily blocked President Joe Biden’s student debt transfer on Friday, just hours after he boasted that the courts were on his “side” on the issue.

The ruling represented a massive setback to the beleaguered White House’s efforts to score victories ahead of November 8’s midterm elections.

Earlier this year, Biden ordered Education Secretary Miguel Cardona to use a routine student loan-adjustment law to transfer perhaps $400 billion of student debt from millions of Americans who knowingly signed for that debt to tens of millions of Americans who did not go to college or already paid off their college loans.

It would be one of the largest wealth transfers in U.S. history, and it was never authorized by Congress. It was also a transparent attempt to woo college-age voters.

Nebraska Attorney General Doug Peterson and Missouri Attorney General Eric Schmitt – who is the Republican nominee for U.S. Senate – led a coalition of six states to file suit in U.S. District Court for the Eastern District of Missouri, arguing that the law the White House cited did not given the Cardona the authority to take such sweeping action.

That court on Thursday dismissed the lawsuit for lack of standing, concluding that the states failed to connect the allegedly illegal action to any harm experienced by the states.

Biden reacted on Friday by telling an audience of students in his home state of Delaware: “You know, they’ve been fighting us in the courts. But just yesterday, a state court and the Supreme Court said, ‘No, we’re on Biden’s side.’”

Hours later, however, the U.S. Court of Appeals for the Eighth Circuit took the extraordinary step of issuing an administrative stay to block the program immediately pending further developments. The normal appellate process takes months, and even expedited appeals typically take a number of weeks. Appeals courts very rarely take actions more quickly than that.

In this case, the stay came into effect on the same day the Biden Administration launched its student loan forgiveness website, potentially reducing the scope of potential harm by halting the program.

The fact that the Eighth Circuit granted an immediate administrative stay suggests a likely defeat for the administration.

Such a stay is not a ruling on the merits, but this extraordinary move suggests that a motions panel of the St. Louis-based court expects to rule in favor of the states, shutting down Biden’s program.

The appellate court has ordered legal briefs filed next week on an emergency schedule.

The case is Nebraska v. Biden, No. 22-3179 in the U.S. Court of Appeals for the Eighth Circuit.

10 Comments
  • Tacitus Kilgore says:

    This is the tyranny our founders warned us about and it has to be stopped by all means possible. If the Democrats are allowed to steal this election then it is up to the people to remove this tyrannical regime by force if necessary. It is our duty to the constitution and the survival of the republic. Let the Democrats know we are watching them and we will not allow them to steal this election.
    They are on notice!

  • Former Patriot says:

    Finally obiden gets stopped this unConstitutionsl student loan program is wrong on so many levels the main one is he’s stealing from the working class people, every Hispanic, every black family, every Asian is going to be eating this $400 billions that obiden wants to take from us add that to the 5 Trillion he’s taken already with his lies that averages for every taxpayer in America around $9000 loss of wages for the rest of our lives, this is Obidens inflation the tanked economy sky high food and gas prices ($5.79 a gal here) oh and us paying medical expenses, food, clothing and housing for the 5 million illegals he’s let into this country so far can you say welcome to Obidens Recession forever this is just the beginning if we don’t take back America Vote in Person Not by Mail! Vote for America our lives depend on it! Let’s Go Brandon!

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