As expected, the Department of Education now has a lawsuit filed against them because of their Student Debt Relief Plan. The Pacific Legal Foundation, with Frank Garrison as their plaintiff, have turned in their paperwork at the United States District Court for the Southern District of Indiana.
The principal complaint is that “Congress did not authorize the executive branch to unilaterally cancel student debt,” according to Caleb Kruckenberg, an attorney at Pacific Legal Foundation. “It’s flagrantly illegal for the executive branch to create a…program by press release, and without statutory authority or even the basic notice and comment procedure for new regulations.”
Due to the White House’s actions, the aggrieved plaintiff will have to pay additional state taxes. Congress previously authorized a Public Service Loan Forgiveness (PSLF) program, which would not incur those taxes. It would appear that Mr. Garrison and the PLF have a solid case here, but ultimately that will be up to the courts to decide.
It’s estimated that partial student loan cancellation will cost American taxpayers an estimated $400 billion. As of September 29, 2022 the Pacific Legal Foundation are seeking emergency relief with a temporary restraining order. You can read the PLF’s press release here.
Education Secretary Miguel Cardona, President Joe Biden nor Vice President Kamala Harris were unavailable for comment at press time.
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