JEFFERSON CITY, Mo. (KCTV) – A U.S. Court of Appeals has upheld a Missouri district court order to block the cancelation of student loan debt on a national level.
Missouri Attorney General Andrew Bailey announced on Friday, Aug. 9, that the Eighth Circuit Court of Appeals upheld a court order obtained at the district court level to block the cancelation of student loan debt.
AG Bailey said his lawsuit targeted what he calls the “SAVE” Plan, which would have cost Americans a half trillion dollars – $45 billion more than the last plan.
“The Eighth Circuit rightfully recognized that Joe Biden and Kamala Harris will do anything they can to evade the Constitution when it comes to ‘forgiving’ student loans in an election year,” Bailey said. “This court order is a stark reminder to the Biden-Harris Administration that Congress did not grant them the authority to saddle working Americans with $500 billion in someone else’s Ivy League debt. This is a huge win for every American who still believes in paying their own way.”
Bailey noted that the Eighth Circuit upheld the original preliminary injunction and took it even further, holding that the government is enjoined from any further forgiveness of principal or interest, from not charging borrowers accrued interest and from further implementing SAVE’s payment-threshold provisions.
The AG indicated that the Supreme Court ruled in favor of his previous challenge to the wealth transfer of hundreds of billions in student loan debt. In a 6-3 decision, the Court struck the repayment plan down as unconstitutional. It cited a $430+ billion impact on the federal budget.
The Court held that Missouri’s student loan servicing company, MOHELA, is an arm of the state government and, therefore, granted the states the right to challenge the student loan plan.
“Just last year, the Supreme Court struck down an attempt by the President to force teachers, truckers, and farmers to pay for the student loan debt of other Americans—to the enormous tune of $430 billion,” the suit read. “In striking down that attempt, the Court declared that the President cannot ‘unilaterally alter large sections of the American economy.’ Undeterred, the President is at it again, even bragging that ‘the Supreme Court blocked it. They blocked it. But that didn’t stop me.’”
Bailey noted that he was joined by attorneys general from Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma.
“Yet again, the President is unilaterally trying to impose an extraordinarily expensive and controversial policy that he could not get through Congress,” the suit continued. “This latest attempt to sidestep the Constitution is only the most recent instance in a long but troubling pattern of the President relying on innocuous language from decades-old statutes to impose drastic, costly policy changes on the American people without their consent.”
To read the Eighth Circuit’s order, click HERE.
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