First lawsuit filed to block Biden’s student debt forgiveness plan
Indiana lawyer files federal lawsuit against the U.S. Department of Education and Miguel Cardona, the U.S Secretary of Education.
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Frank Garrison, an Indiana-based lawyer filed a lawsuit against the U.S. Department of Education and Miguel Cardona, the U.S. Secretary of Education.
Late August, President Biden announced the student debt loan forgiveness plan which stated $10,000 in student debt for borrowers who earn less than $125,000 (individual borrowers) and $250,000 for households per year will be forgiven, and up to $20,000 of debt cancellation for Pell Grant recipients.
However, the student debt cancellation has been the subject of heavy scrutiny, and the firm’s lawyer argued Biden’s decision violates the Constitution and federal law.
The Pacific Legal Foundation, Garrison’s employer, filed a 26 page complaint on his behalf, stating how the Department of Education has “no lawful authority to issue the rule.”
“Nothing about loan cancellation is lawful or appropriate,” the firm's lawyers argue as reported by NBCNews. “In an end-run around Congress, 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.”
They further argued that people like Garrison, who financed his education using federal student loans, “will actually be worse off because of the cancellation,” since he has made 57 payments toward the Public Service Loan Forgiveness program, he expects for his debt to be canceled this way. The lawsuit claims the debt cancellation is not justified by the HEROES Act because it is not ‘necessary’ or ‘a direct result of a..national emergency.’