President Joe Biden's plan to forgive hundreds of billions of dollars in student loan debt violates both federal law and the Constitution, according to a just-filed lawsuit from the Pacific Legal Foundation (PLF), a libertarian law firm. The lawsuit claims that the plan is illegal under the Constitution.
Frank Garrison is a plaintiff in the lawsuit
- He borrowed federal student loans to pay for law school, but according to him, Biden's debt forgiveness plan will actually subject him to a financial penalty in the form of a state tax
- This gives him standing to sue the U.S. Education Department, his lawsuit argues
- Biden's broad forgiveness plan, however, will be taxed as income in Indiana-where Garrison resides-as well as Wisconsin, North Carolina, Minnesota, Mississippi, and Arkansas
The PACF lawsuit:
- PLF is arguing that Biden has violated both the Constitution and the Administrative Procedure Act, which give Congress rather than the president the power to make new regulations.
- Biden's new plan will forgive up to $20,000 worth of debt for many borrowers. The plan could cost U.S. taxpayers anywhere between $300 billion and a trillion dollars.
https://reason.com/2022/09/27/biden-student-loan-forgiveness-lawsuit-pacific-legal-foundation/
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