Lawsuit Filed Against Biden's Student Loan Forgiveness Plan

The Pacific Legal Foundation (PLF) filed a lawsuit Tuesday against the Department of Education over its new student loan cancellation policy, becoming the first organization to challenge the Biden administration’s move to forgive up to $20,000 in student debt per borrower. The federal lawsuit, filed in the U.S. District Court for the Southern District of Indiana, contends that Biden’s decision to cancel student loan debt for some borrowers is illegal because Congress did not approve it. The Congressional Budget Office estimated Monday the cost of the cancellation policy is around $400 billion, although that figure is in dispute from proponents of loan debt cancellation. The PLF seeks an injunction halting the cancellation policy from going into effect and a judgment preventing any further action to cancel student loan debt.

Members of Congress have introduced legislation in response to the administration’s student loan debt relief program. Rep. Virginia Foxx (R-NC) introduced the Responsible Education Assistance through Loan (REAL) Reforms Act as a conservative vision for postsecondary education and Rep. Bobby Scott (D-VA) introduced the Lowering Obstacles to Achievement Now (LOAN) Act to modify student loan programs. Republican Governors have also sent a letter to President Biden asking to withdraw student loan forgiveness.

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