- Advocates are calling on the White House to end student loan cuts.
- The requests came after a federal judge ruled Biden’s bailout program unconstitutional.
White House advisers are renewing efforts to rework the administration of student loan payments after a federal judge ruled against President Joe Biden.
With the growing number of activist-backed laws — and the White House’s intention to appeal the previous ruling to the U.S. Supreme Court — advocates say Biden should give some leeway to the America until the final decision is made.
“This is a miscarriage of justice and a serious mistake, and we continue to believe and understand that the president’s decision to cancel student loans is completely constitutional,” said the president of the Student Debt Crisis. Center, Natalia Abrams, told Insider. “It’s like the judges are making political and legal decisions.”
The Student Loan Relief Center is a California-based non-profit organization that advocates for student loan relief.
“This is not a divisive issue. This is an issue that affects 40 million Americans of all backgrounds and races and political persuasions, so we don’t want this to be misrepresented,” CEO Cody Hounanian said. told Insider. “We want to help the families affected by the epidemic and continue to struggle.”
Earlier this week, Texas US District Judge Mark Pittman handed down a Trump-appointed ruling that declared Biden’s amnesty plan unconstitutional. The decision came after two creditors, Myra Brown and Alexander Taylor, filed a lawsuit, supported by the Job Creators Network, because they were not involved in the program.
Student loan applications were blocked, though the Biden administration said it would keep open the forms that more than 20 million people have already submitted.
Organizations are urging Biden to announce another pay delay
Over the summer, many Americans let out a sigh of relief after the Biden administration offered to offer $10,000 in federal student-loan relief to borrowers below $125,000 per year. In addition, Biden agreed to provide $20,000 in aid for Pell grant recipients who fall below the income range.
The White House also announced that they have extended the student-finance break for the last time, and the payments will be paid at the end of 2023.
As Americans continue to recover from the COVID-19 pandemic and inflation continues to rise, Abrams said the wait is also on student loan debt.
“We think the President should come out and speak soon [a pause on] Payments will be delayed, and not only until all legal obstacles are cleared, but until the debt is cleared from people’s accounts,” said Abrams.
—Student Debt Crisis Center (SDCC) (@DebtCrisisOrg) November 11, 2022
The nonprofit started a petition titled “President Biden: Keep Student Loan Payments Passed” and has collected nearly 40,000 signatures as of November 12.
Other groups, such as the Student Loan Protection Agency, agree.
“The unfortunate result of this court’s decision … is that tens of millions of student loan borrowers across the country have had their outstanding loans frozen as a result of this fraudulent and fabricated legal claim,” the Associate Director and Managing Director Persis Yu. told Tennessee Lookout in a statement following the decision. “The Biden Administration cannot afford to roll back the payments. It must use all of its tools to fight to ensure that creditors receive the payments they need.”
Made ‘a lot of grief’
According to recent data, nearly 50 million Americans have taken out student loans and have a combined debt of $1.75 trillion. For most people, Biden’s plan will help them pay off their crippling debt and help close the public wealth gap.
“When we give to billion-dollar corporations, there’s no reason. But when it comes to lifting people who really need help, including Pell Grant recipients—51% of which go to students whose family income is less than $20,000 a year—one that will be an issue,” said NAACP President Derrick Johnson, per the Hill.
However, these problems “have created a lot of frustration and anger about the student finance system,” Hounanian told Insider. “We must always remind borrowers that there are strong allies working on this issue and many other issues that borrowers can live with and try to keep that hope alive because there has been a lot of progress though this roadblock.”
ABC News asked White House Press Secretary Karine Jean-Pierre if creditors are ready to start thinking about repayment.
“I think we will be strong,” he told the outlet, saying he would appeal the judge’s decision.
He did not say whether Biden would delay the break.