Biden’s student loan plan sees lawsuit from small business group

It’s one of the few lawsuits filed in recent weeks by conservative business groups, lawyers and Republican lawmakers.

WASHINGTON — Small business advocacy group filed a new lawsuit A recent legal challenge to the program, which seeks to block the Biden administration’s efforts to forgive tens of millions of Americans from student loan debt.

The lawsuit, filed Monday by the Job Creators Network Foundation, alleges that the Biden administration violated federal procedure by not seeking public comment on the program. This has been the case in recent weeks by conservative business his group, lawyers and Republican lawmakers, as the Biden administration seeks to move ahead with plans to write off billions of dollars of debt by his November midterm elections. It’s one of the few lawsuits filed against him.

Elaine Parker, president of the Job Creators Network Foundation, slammed the program as management overreach and complained that it didn’t address the root causes of rising debt.

“This relief measure will affect everyone in this country because of the scale of this program,” she said. “These universities need to take responsibility for this student debt crisis,” she added.

Related: When do you start applying for student loan forgiveness?

The Job Creators Network Foundation previously sued the courts to block the Biden administration’s mandatory COVID-19 vaccine for businesses.Also sued Major League Baseball in 2021 all-star game move He left Atlanta over his opposition to changes to Georgia’s voting laws. The lawsuit, which claimed losses to local businesses, was later dropped.

The new lawsuit is one of a growing number of legal challenges to block a proposal by President Joe Biden in late August to cancel up to $20,000 in debt for certain borrowers. .

Six Republican-led states Filed late last monthas well as the Pacific Legal Foundation, a legal advocacy group in Sacramento, Calif., have accused the Biden administration of overstepping executive power. Filed in Indiana federal courtcalling the plan an illegal excess that increases the state tax burden for some debt-forgivable Americans.

Related: Education department changes student debt relief guidance, now excludes millions

Meanwhile, a Wisconsin federal judge last week dismissed a lawsuit from A local taxpayer group, the Brown County Taxpayers Association, tried to block the program and determined that the group was ineligible to sue. and said the plan was discriminatory because it was intended to give special assistance to borrowers of color.

The latest lawsuit, filed in the United States District Court for the Northern District of Texas, raises questions against the U.S. Department of Education and its secretary, Miguel Cardona, about how the plan was developed. It alleges that the Biden administration violated the Administrative Procedures Act’s notification and comment procedures. It also challenges the government’s legal legitimacy for the program.

The lawsuit includes two plaintiffs. One is not eligible for debt forgiveness because the plan excludes commercially held loans that have not defaulted. She no longer receives one of her grants, so she is entitled to less debt relief under the plan.

“Behind the scenes, the State Department promulgated a new debt forgiveness program that will affect tens of millions of Americans and cost hundreds of billions of dollars,” the lawsuit states. It aims to keep key details of the program under wraps and secure debt forgiveness in time for the November elections. “

Related: Republican-led state sues Biden administration over student loan forgiveness plan

The ministry also stated that “the program makes many arbitrary decisions regarding the program, such as which individuals receive debt forgiveness, how much debt is forgiven, and what types of debt are covered by the program. I did,” he claims.

“The consequences of this arbitrariness are predictable. Some will profit significantly, some will be shortchanged, and others will be left completely behind,” it reads.

The case was assigned to U.S. District Judge Reed O’Connor, who ruled in 2018 that the Affordable Care Act was unconstitutional. The Supreme Court overturned that ruling last year. Former President George W. Bush’s appointee O’Connor also ruled against other policies pursued by the Democratic administration. Last month, he ruled that his ACA provision requiring coverage for his HIV prophylaxis violated his Texas employer’s religious beliefs.

According to a 2020 court order, civil cases filed in federal court in Fort Worth have a 90% chance of going to either O’Connor or former President Donald Trump’s nominee Mark Pittman.

White House spokesman Abdullah Hassan released a statement defending the loan forgiveness program.

“Those who oppose our plan stand with special interest groups and are doing everything possible to keep millions of middle-class Americans out of debt, but the president and his administration are determined to stay out of the pandemic. We are fighting to legally give recuperating middle-class families some breathing room, and we will be ready to start paying off the loans again in January.”

Biden’s Debt Forgiveness Program will write off $10,000 of student loan debt for individuals with annual incomes of less than $125,000 or households with annual incomes of less than $250,000. Pell grant recipients who demonstrate greater financial need are generally eligible to receive an additional $10,000.

The Biden administration called for the legislation passed after the September 11, 2001 terrorist attacks to Legal legitimacy of the program. In an August legal opinion, the Justice Department said the law gives the administration “clean-up powers” to reduce or eliminate student debt during a national emergency. The administration has listed the COVID-19 pandemic as an emergency.

Congressional Budget Office quote a program It will cost taxpayers $400 billion over the next 30 years. Biden’s student loan plan sees lawsuit from small business group

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