We went from having a huge victory over Joe Biden to Biden laughing all the way to the bank with our tax dollars in the space of a week.
On August 7, the 5th Circuit Court of Appeals placed an injunction against Joe Biden’s latest Student Loan bailout plan for $39 billion.
Then, on Monday, U.S. District Judge Thomas Ludington of the Eastern District of Michigan, a Bush appointee, tossed the case that had been filed by the New Civil Liberties Alliance on behalf of the Mackinac Center for Public Policy and the Cato Institute, saying those groups did not have standing.
The Battle Goes On
So, to be clear, these are two different cases that are playing out, but they are both about the same issue.
The case brought by a consortium of for-profit schools, the Career Colleges and Schools of Texas is still in the pipeline.
In that case, the 5th Circuit blocked Biden’s new rule, which was put in place to start to chip away at Student Loan debt, reported the Washington Examiner.
There is another case that will go before the Supreme Court in the fall on this matter, SEC v Jarkesy. The decision in that case will likely serve as the precedent for all of these cases.
In the Cato Institute case, Judge Ludington ruled that the plaintiffs had no standing, therefore the case was dismissed without prejudice, saying these groups were not the proper groups to bring the suit.
The judge stated, “But—even assuming that Plaintiffs’ alleged injury was sufficient—they have not adequately demonstrated a causal link between Defendants’ action and an identifiable injury.”
Sheng Li, litigation counsel for New Civil Liberties Alliance, stated, “The district court did not rule on the merits of the case and instead said Cato and Mackinac were not the right parties to bring it.
“We disagree with the court’s conclusion regarding legal standing and are reviewing legal options with our clients,” reported The Hill.
The Biden administration took a victory lap, stating, “The Biden-Harris Administration is fighting every day to fix the broken student loan system and make sure borrowers get the relief they earned, need, and deserve.
“This lawsuit was nothing but a desperate attempt from right-wing special interests to keep hundreds of thousands of borrowers in debt, even though these borrowers have earned the forgiveness that is promised through income-driven repayment plans.”
Biden keeps talking about forgiveness and debt cancelation, but that is not what this is.
Someone has to pay that money back, and it will be the American taxpayer until the Supreme Court settles this issue once and for all.
It has already blocked Biden’s initial plan, now it needs to stop these new rules that are trying to circumvent Congress and wipe out student loan debt with the swipe of a pen.
