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Biden administration closes student loan handout applications after court ruling

FOX News logo FOX News 11/11/2022 Timothy Nerozzi
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President Biden's signature student loan handout has announced it will stop taking applications after it was struck down by a federal judge.

The Student Aid website application has now been changed to a plain text page with the heading, "Student Loan Debt Relief Is Blocked."

BIDEN'S STUDENT LOAN HANDOUT STRUCK DOWN BY FEDERAL JUDGE

"Courts have issued orders blocking our student debt relief program," the website states. "As a result, at this time, we are not accepting applications. We are seeking to overturn those orders."

President Biden speaks about student loan debt forgiveness in the Roosevelt Room of the White House on Aug. 24 in Washington. AP/Evan Vucci © AP/Evan Vucci President Biden speaks about student loan debt forgiveness in the Roosevelt Room of the White House on Aug. 24 in Washington. AP/Evan Vucci

The Department of Justice said Friday it will appeal the judge's decision.

BIDEN ADMIN TO APPEAL TEXAS FEDERAL JUDGE'S RULING ON STUDENT LOAN HANDOUT

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Biden's plan, which aims to cancel up to $20,000 in student loan debt for Pell Grant recipients in college and up to $10,000 for others who borrowed using federal student loans.

"Whether the Program constitutes good public policy is not the role of this Court to determine. Still, no one can plausibly deny that it is either one of the largest delegations of legislative power to the executive branch, or one of the largest exercises of legislative power without congressional authority in the history of the 

United States," United States District Judge Mark Pittman wrote. 

NC SENATOR-ELECT LOOKS TO ‘PUT THE BRAKES ON’ BIDEN’S AGENDA HURTING 'PURSES AND POCKETBOOKS'

President Biden delivers remarks on the student debt relief portal beta test, in the South Court Auditorium of the Eisenhower Executive Office Building, next to the White House, in Washington, DC, on Oct. 17, 2022. BRENDAN SMIALOWSKI/AFP via Getty Images © Photo by BRENDAN SMIALOWSKI/AFP via Getty Images President Biden delivers remarks on the student debt relief portal beta test, in the South Court Auditorium of the Eisenhower Executive Office Building, next to the White House, in Washington, DC, on Oct. 17, 2022. BRENDAN SMIALOWSKI/AFP via Getty Images

"In this country, we are not ruled by an all-powerful executive with a pen and a phone. Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government," Pittsman continued. "The Court is not blind to the current political division in our country. But it is fundamental to the survival of our Republic that the separation of powers as outlined in our Constitution be preserved. And having interpreted the HEROES Act, the Court holds that it does not provide ‘clear congressional authorization’ for the Program proposed by the Secretary," 

White House press secretary Karine Jean-Pierre said the Biden administration "strongly" disagrees with the decision.

"The President and this Administration are determined to help working and middle-class Americans get back on their feet, while our opponents – backed by extreme Republican special interests – sued to block millions of Americans from getting much-needed relief," Jean-Pierre added.

She said the Department of Education will hold onto the information of all 26 million borrowers who have applied for the handout, so their relief can be "quickly" processed once they "prevail in court."

Fox News' Adam Sabes contributed to this report.

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