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The Lawless SAVE Plan Goes Down
Wall Street Journal ^ | August 13, 2024 | WSJ Editorial Board

Posted on 08/15/2024 5:39:06 AM PDT by karpov

The courts keep slapping down Biden Administration lawbreaking, not that the Harris or Trump campaigns seem to notice. An Eighth Circuit Court of Appeals panel on Friday blocked President Biden’s SAVE student loan forgiveness plan and rapped the Administration for canceling debt in defiance of a lower-court order.

The Administration rolled out the SAVE plan last summer after the Supreme Court blocked its gambit to cancel $10,000 to $20,000 for each borrower. The new plans cap monthly payments at 5% of discretionary income—defined as exceeding 225% of the poverty level—and cancel remaining balances after 10 to 20 years. Borrowers don’t have to pay accrued interest.

A lower court in June blocked the Administration from discharging debt for borrowers in these SAVE plans while letting other provisions take effect. But the Administration continued to forgive their debt by—get this—invoking authority to do so for borrowers in other repayment plans that were established by Congress. Talk about audacity.

Now the Eighth Circuit is blocking the entire SAVE plan. As the panel explains in an unsigned order, the SAVE plan “is an order of magnitude broader” than other income-based repayment plans: “Millions of borrowers who opt-in to SAVE will pay nothing towards their principal balance, nothing towards interest, and then will have their untouched principal balance forgiven sooner.”

The panel notes that the Higher Education Act lets the education secretary create “income-contingent repayment plans,” but it doesn’t allow him to cancel debt for borrowers who enroll in them. Congress in 2010 separately established loan repayment plans that cap payments at 10% of discretionary income and cancel debt after 20 years.

No law gives the secretary authority to unilaterally create generous new repayment plans under which loans can be forgiven. The panel invokes the Supreme Court’s major questions doctrine

(Excerpt) Read more at wsj.com ...


TOPICS: Crime/Corruption; Government; News/Current Events
KEYWORDS: 8thcircuit; illegal; loanforgiveness; loans; pandering; student; studentloans
full article
1 posted on 08/15/2024 5:39:06 AM PDT by karpov
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To: karpov

Will the freeloaders have to pay back the unauthorized, illegal bailouts?


2 posted on 08/15/2024 5:42:24 AM PDT by chief lee runamok ( Le Flâneur @Large)
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To: karpov

BTTT


3 posted on 08/15/2024 5:42:27 AM PDT by nopardons
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To: karpov

“and rapped the Administration for canceling debt in defiance of a lower-court order.”

So when will the court hold Biden in contempt?

L


4 posted on 08/15/2024 5:43:21 AM PDT by Lurker ( Peaceful coexistence with the Left is not possible. Stop pretending that it is.p)
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To: chief lee runamok

That’s what I don’t get. Apparently, 100’s of thousand of student loans have already been illegally “forgiven,” to the tune of billions. Is this undoable?


5 posted on 08/15/2024 5:44:09 AM PDT by fwdude
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To: karpov

Related:

https://freerepublic.com/focus/f-news/4258479/posts

“The Biden-Harris team has signaled that it’s gearing up for an “October Surprise” on student loan cancellation — although it might come even sooner, sneaking in before early voting starts. Once again, they are trying to shift hundreds of billions of dollars in loans onto the 90% of Americans who don’t owe student debt, to gain favor with voters who do. And this time they’ve added a brazen direct-marketing campaign to appeal to those indebted voters, just ahead of the presidential election”


6 posted on 08/15/2024 5:47:06 AM PDT by Bob434
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To: karpov
One of the reasons that the Democrats are so desperate to forgive student loan debt in the $10,000 - $20,000 range is because much of it is just flat fraudulent. lending.

During the Obama Administration, Student Financial Aid lending standards were reduced to virtually nothing and the range of what qualified as a “school” was expanded to include “trade schools” specializing in everything from finger nail painting and hair weaves.

This creating an explosion of fly by night “schools” that were worthless and many were just outright scams where the loan monies were split between the school and the student and both simply took the money and ran.

The Obama Administration saw the student loan program as a way to funnel money to allies and to provide back door reparations and income redistribution. Many of the students were fraudulent phantom students with factious identities created by politically connected people within the system.

Many of the people who received these loans had no intention educating themselves or of ever paying the loans back and simply used the money to fund their life styles and living expenses.

Most of these loans were in the sub $20,000 range so forgiving the loans allows the Democrats to cover up the blatant school loan fraud and abuses of the system that occurred under the Obama Administration.

7 posted on 08/15/2024 5:58:15 AM PDT by rdcbn1
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To: Lurker
"So when will the court hold Biden in contempt?

Lots of tisk tisking and hand wringing in the DC courts...but that's about it.

If the people in this Republic are willing to put up with it, then there is no law in DC.. The lawyers can take whatever and do whatever they want... :(

8 posted on 08/15/2024 5:59:28 AM PDT by unread (I pledge allegiance to the flag of the United States of America, and to the REPUBLIC..!)
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To: rdcbn1

The Democrat party is a criminal enterprise.

L


9 posted on 08/15/2024 6:03:07 AM PDT by Lurker ( Peaceful coexistence with the Left is not possible. Stop pretending that it is.p)
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To: rdcbn1

Part of the panic of the Democrats may be regarding the prospect that Trump may actually get people appointed who would investigate and prosecute these scams.


10 posted on 08/15/2024 6:26:14 AM PDT by SauronOfMordor (Either you will rule. Or you will be ruled. There is no other choice.)
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To: karpov

Maybe if the economy wasn’t in shambles people wouldn’t have trouble paying off their loans?


11 posted on 08/15/2024 7:04:28 AM PDT by subterfuge (I'm a pure-blood!)
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To: karpov

If it wasn’t prior, it is now indisputable why the federal government took over student loans.

Anyone who argues against the premise that the entire scheme was ALWAYS intended to buy votes is a terminal sufferer of the true pandemic.


12 posted on 08/15/2024 7:04:48 AM PDT by logi_cal869 (-cynicus the "concern troll" a/o 10/03/2018 /!i!! &@$%&*(@ -)
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To: karpov

https://media.ca8.uscourts.gov/opndir/24/08/242332P.pdf

Appeal from United States District Court
for the Eastern District of Missouri - St. Louis
____________
Submitted: July 26, 2024
Filed: August 9, 2024
[Published]
____________
Before GRUENDER [Dubya judge], ERICKSON [Trump judge], and GRASZ [Trump judge], Circuit Judges.


13 posted on 08/15/2024 7:56:10 AM PDT by kiryandil (FR Democrat Party operatives! Rally in defense of your Colombian cartel stooge Merchan!)
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To: karpov

FJB - FKH


14 posted on 08/15/2024 8:05:13 AM PDT by MrBambaLaMamba (The only good commie is one that's dead - Country Joe McDonald )
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