Student debt relief in limbo after federal judge in Fort Worth blocks program
FORT WORTH (CBSDFW.COM) — Savannah Huemoeller had hoped to apply for President Biden's student debt relief program.
She said she has $60,000 in loans to pay off after completing her undergraduate and graduate studies at UNT in Denton last year.
"That would mean a lot to me. I'm very proud that I was able to graduate college and get a job post college. That still doesn't mean I'm not struggling to have to pay off some of these loans."
Huemoeller, who works for the Dallas Cowboys as a Brand Programs Manager, and millions of other college graduates with student loans to pay off will have to wait to see if they can get a break from the Biden administration program.
Federal judge Mark Pittman in Fort Worth ruled Thursday that the Department of Education's Secretary, Miguel Cardona, didn't have the authority to create the program.
In his order, Pittman wrote, "The HEROES Act— a law to provide loan assistance to military personnel defending our nation—does not provide the executive branch clear congressional authorization to create a $400 billion student loan forgiveness program. The Program is thus an unconstitutional exercise of Congress's legislative power and must be vacated."
David Coale, a constitutional lawyer in Dallas said, "Once the court concluded there was no basis for the agency to have acted, that's pretty much it for the whole act. And so under its order, it's as if there was no act. The Secretary has no power to carry it out."
The debt relief program would forgive $10,000 in student loans for individuals making less than $125,000 in income, or households earning less than $250,000.
Those who received Pell Grants would have $20,000 in loans forgiven.
The White House is appealing the order by the federal judge in Fort Worth to strike down the student debt relief program.
As a result, the administration says it's not accepting applications for the program, at least not right now.
The White House said 16 million people have already been approved for debt relief.
For millions of others who already applied, the administration said it will hold onto their information and process it if a court gives the green light.
The President's student debt relief program was previously blocked by the Eighth U.S. Circuit Court of Appeals as it considers legal challenges by six states.
One college graduate who said he paid off his student loans long ago told me off-camera he disagrees with the President's program.
Huemoeller said she understands that sentiment, but she said without any relief, she's on track to pay off her loans in 30 years.
"As a young adult in your 20s, you still have all these other bills you have to pay the exact same time. So it's a long period of time you have to pay student loans, just getting any type of money would mean the world to me.
