Student debt forgiveness on hold

U.S. Department of Education headquarters in Washington, D.C.

U.S. Education Secretary Miguel Cardona promised to move forward with a massive student loan cancellation despite a court judgment blocking it.

The 8th U.S. Circuit Court of Appeals put the program on hold temporarily late Friday in response to a lawsuit from six Republican-led states. The states argue that the Biden administration does not have the authority to appropriate the $400 billion needed for the effort, which would forgive $10,000 for many borrowers and up to $20,000 for Pell Grant recipients.

What will happen to the program now? In an op-ed for USA Today, Cardona encouraged Americans to continue submitting online applications for debt relief.

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The Biden administration believes it will ultimately win the legal battle and be able to follow through on its promises. The states suing over the program argue it will force taxpayers to pay the bills of relatively affluent Americans.

This story originally appeared in WORLD. © 2022, reprinted with permission. All rights reserved.

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It’s a transfer of wealth from the working to the “woking”. There is, however, an additional detriment: The money supply will increase by (at least) $400B adding fuel to the inflation fire. Federal spending is by far the chief cause of inflation (properly understood).

But at least they don’t have to print it. Conserves paper and ink, you know, and the energy to run the presses. Just vote $400B into existence. “Let it be done.”