On Tuesday, The Pacific Legal Foundation filed a lawsuit against the U.S. Department of Education and the Biden administration for its policy to cancel up to $10,000 in student debt for millions of borrowers.
The lawsuit, which was filed in the U.S. District Court for the South District of Indiana, argued Biden’s use of the HEROES Act, a 2003 law meant to aid Iraq War veterans and their families, as justification for the move occurred with “breathtaking informality and opacity,” The Daily Wire explained.
“It’s flagrantly illegal for the executive branch to create a $500 billion program by press release,” Pacific Legal Foundation attorney Caleb Kruckenberg said in a statement. “And without statutory authority or even the basic notice and comment procedure for new regulations.”
Forcing 87% of Americans who don't have student loan debt to pay for $500 billion in debt (CFRB) held by mostly high-earners is a slap in the face.
— Rep. Scott Fitzgerald (@RepFitzgerald) September 27, 2022
The student loan cancellation plan applies to individuals earning less than $125,000 annually. This suit comes a day after the Congressional Budget Office (CBO) said that Biden’s plan to cancel some student loan debt will cost $400 billion.
Reuters reported in August that nongovernment budget analysts projected the program’s total 10-year cost at $500 billion to $600 billion, including extending a repayment pause on all federal student loans through Dec. 31 and reducing future payments based on income.
CBO estimates that the cost of outstanding student loans to the federal government will increase by about $400 billion because of an executive action canceling some debt. https://t.co/FgEHBn2XP6
— U.S. CBO (@USCBO) September 26, 2022
In the lawsuit, the attorneys also address the common frustration among conservatives that they chose to enter this debt and it is unfair to those who chose another path.
“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,” Pacific Legal Foundation senior attorney Steve Simpson said.
“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 Pacific Legal Foundation filed a temporary restraining order to stop the loan forgiveness plan from taking effect, but a judge has yet to rule on that order.
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