Tuesday, September 27, 2022

New Lawsuit Challenges Legality Of Biden's Student Loan Forgiveness Plan

 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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