The Pacific Legal Foundation (PLF), a national nonprofit legal foundation, has become one of the first groups in the country to file a lawsuit against the Department of Education student loan forgiveness plan with a filing on Tuesday.
The suit alleges that President Joe Biden (D) had no constitutional authority to cancel student debt with attorney Caleb Kruckenberg stating, “Congress did not authorize the executive branch to unilaterally cancel student debt. It’s flagrantly illegal for the executive branch to create a $500 billion program by press release, and without statutory authority or even the basic notice and comment procedure for new regulations.”
President Biden announced the plan to cancel up to $400 billion in student loans last month utilizing the Heroes Act of 2003 as a vehicle to cancel loans by using the covid-19 pandemic, which President Biden said was over in a recent 60 minutes interview, as justification.
“Cancelling student debt is unjust to those who have paid their loans or never took any. It will only lead to more calls for government intervention in education at taxpayers’ expense,” said Steve Simpson, senior attorney at Pacific Legal Foundation. “Loan cancellation will make Americans more divided, as those who paid their loans—or never went to college—will have good reason to think that we no longer have a government of, by, and for the people.”
The plan will cancel up to $10,000 for borrowers making less than $125,000 a year and $250,000 a year for married couples, according to Newsweek. Receivers of Pell grants will be eligible for up to $20,000 in relief.
“Nothing about loan cancellation is lawful or appropriate. In an end-run around Congress,” the lawsuit claims, adding, “the administration threatens to enact a profound and transformational policy that will have untold economic impacts. The administration’s lawless action should be stopped immediately.”
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PLF is bringing the suit via one of its attorneys who is currently eligible for loan forgiveness under the Pell grant carve out. Following the forgiveness, however, he would be stuck with a state tax bill thus giving him injury to sue the Department of Education.
“Plaintiff Frank Garrison is a public interest attorney — now at Pacific Legal Foundation — who believes the rule of law and separation of powers are bulwarks for liberty and against centralized government power,” PLF explains. “As a part of an existing, congressionally authorized Public Service Loan Forgiveness (PSLF) program, he will receive debt forgiveness after making 10 years of payments on his loans. The challenged program will stick him with a new state tax bill which he would not have under his existing PSLF program.”
While PLF has been able to find standing in their lawsuit, millions of other Americans will be affected by student loan forgiveness as those who didn't go to college, who paid their way through college, or paid off their loans are left out of this handout to college-education Americans.
“Cancelling student debt is unjust to those who have paid their loans or never took any. It will only lead to more calls for government intervention in education at taxpayers’ expense,” said Steve Simpson, senior attorney at Pacific Legal Foundation. “Loan cancellation will make Americans more divided, as those who paid their loans—or never went to college—will have good reason to think that we no longer have a government of, by, and for the people.”
PLF is aiming to halt any further actions by the Biden Administration and is hoping to be granted an injunction on the loan cancellation policy.
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