The bad news just keeps on coming for President Joe Biden these days. This was shown once again on Thursday, when a federal appeals court blocked a major Biden administration student loan forgiveness and repayment plan.
Biden’s Department of Education unveiled the Saving on a Valuable Education (SAVE) plan last year. It was meant to be a new income-driven repayment program that aimed to provide affordable payments as well as multiple pathways to loan forgiveness.
Republicans, however, have fought back against the plan by claiming that Biden administration exceeded the authority provided by Congress. Unfortunately for Biden, an appeals court just sided with Republicans on this one.
From Forbes:
On Thursday, the 8th Circuit issued a brief order apparently blocking the SAVE plan in its entirety.“Appellants’ emergency motion for an administrative stay prohibiting the appellees from implementing or acting pursuant to the Final Rule until this Court rules on the appellants’ motion for an injunction pending appeal is granted,” said the Court’s one-line, unsigned order.
The order seems to go much further than the Missouri court’s original injunction, which only blocked student loan forgiveness under SAVE. The 8th Circuit’s order could be read to block the entire program, including lower payments, generous subsidies to prevent runaway interest accrual, and automated income recertification.
Biden’s Disastrous Week
This could not come at a worst time for Biden. Indeed, he’s arguably had one of the worst weeks of his presidency. Earlier this week, a devastating new poll revealed that nearly two thirds of Americans want Biden to drop out of this year’s presidential race. Reports are circulating that even top Democrats like Barack Obama and Nancy Pelosi have turned on Biden and are now encouraging him to drop out of the race.
Many would argue that Biden has been shamelessly using student loan forgiveness to try and garner himself votes. Some see his latest student loan forgiveness effort as a desperate last-ditch attempt to drum up enough support to restore some faith in his electability chances among his fellow Democrats.
Despite the repeated setbacks that he’s faced as of late, Biden has pledged to fight back against this ruling.
From PBS:
“Our Administration will continue to aggressively defend the SAVE Plan — which has been helping over 8 million borrowers access lower monthly payments, including 4.5 million borrowers who have had a zero dollar payment each month,” the administration said. “And, we won’t stop fighting against Republican elected officials’ efforts to raise costs on millions of their own constituents’ student loan payments.”
Biden’s desperation is becoming palpable at this point. It’s clear that even Biden himself can feel the walls closing in. No wonder rumors are swirling that Biden could drop out of the race as soon as this weekend.
In the end, it might be time for Biden to put himself out of his own misery and step down. If he doesn’t, he can certainly expect more crushing blows like this appeals court ruling in the weeks to come.
Key Takeaways:
- Appeals court blocks Biden’s latest student loan forgiveness effort.
- Biden has vowed to fight back.
- This comes after a devastating week for Biden as more Democrats turn on him.
Sources: Forbes, PBS, The Associated Press, Axios
