Biden’s student loan forgiveness program facing legal challenges

President Joe Biden’s student debt relief proposal was the subject of a challenge from Wisconsin taxpayers on Thursday, according to The Washington Examiner.

However, Supreme Court Justice Amy Coney Barrett rejected their argument that he had overstepped his power with the potentially trillion-dollar initiative.

Barrett, a Trump appointee, rejected the emergency application made by the Brown County Taxpayers Association without making a statement or forwarding the matter to the full court.

Background

The lawsuit’s rejection suggests that the challengers were unable to establish that they had been directly harmed.

The Wisconsin Institute for Law & Liberty claimed Biden exceeded his authority to use the 2003 HEROES Act, which permits the education secretary to change financial assistance programs for students “in connection with a war or other military operation or national emergency,” according to the lawsuit, which was brought on behalf of the taxpayers.

The challengers argued that the loan forgiveness program should be suspended while the 7th U.S. Circuit Court of Appeals considers their case.

“Of course, we are disappointed that the court denied us emergency relief,” Dan Lennington, WILL deputy counsel, told the Washington Examiner in a statement.

“But that does not make the program lawful. Student loan forgiveness will remain under review by the courts and could possibly still be paused as we advocated for this week,” the statement went on.

Biden’s reasoning

The COVID-19 pandemic has been cited by Biden as one of the key arguments for extending the federal student loan repayment moratorium and for his proposal to cancel thousands of dollars of debt for each borrower.

In August, the president outlined plans to waive $10,000 in student loan debt for borrowers earning under $125,000 annually and $20,000 for those who receive Pell Grants.

According to the impartial Congressional Budget Office, the cost of the country’s student debt cancellation proposal will be around $400 billion, while another budget model estimated a cost of close to $1 trillion.