Two federal courts halted the Biden scheme shortly after the midterm elections, and an appeals court has now ruled that the freeze is here to stay.
According to the Epoch Times:
In a Nov. 30 ruling, the New Orleans-based 5th U.S. Circuit Court of Appeals denied the Biden administration’s request to put on hold a judge’s Nov. 10 order vacating the $400 billion student debt relief program in a lawsuit brought forward by conservative advocacy group Job Creators Network Foundation (JCNF).
The White House had no immediate comment but the administration has said that if the 5th Circuit declined to halt the Texas judge’s order blocking the student debt wipeout, it would ask the U.S. Supreme Court to intervene.
The Biden administration stopped taking student loan forgiveness applications after the November 10 halt, which basically allowed the Biden administration to buy votes for midterms without spending a dime. If Biden were to pass student loan forgiveness as planned, estimates range that the cost would be anywhere between $400 billion and over $1 trillion.
Since the bailout does nothing to address the root cause of student debt (skyrocketing college tuition), it wouldn't be long until national student debt was exactly where it was before a bailout. If the bailout is to wipe out 700 billion worth of debt (the middle of the two estimates), that would only bring national student debt levels back to where they were in 2012.
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