Small business group sues over Biden's $420 billion student loan forgiveness plan

The Job Creators Network Foundation (JCNF) Legal Action Fund (LAF) filed a lawsuit on Monday challenging the Biden administration's student loan forgiveness program as an overreach of executive powers.

The lawsuit on behalf of two plaintiffs seeks to block the program from being implemented on the ground that it “violates the Administrative Procedure Act’s notice-and-comment procedures.”

The Committee for a Responsible Federal Budget has projected that the cost of the program will be $420 billion.

The budget watchdog group also estimated that most of the benefits from Biden's student loan forgiveness program will be "those in the top half of the income spectrum." 

The formal complaint was filed in the District Court for the Northern District of Texas, Fort Worth Division. 

"Our lawsuit intends to block the Biden administration's student loan bailout, which is an unprecedented executive power grab. The administration's action does nothing to address the root cause of unaffordable tuition: greedy and bloated colleges that raise tuition far more than inflation year after year while sitting on $700 billion in endowments," said Elaine Parker, president of Job Creators Network Foundation.

"Colleges need to be held accountable for their outrageous tuition prices that fund high executive pay, an army of administrators who provide little-to-no value, and the construction of resort-style amenities. College endowments, not taxpayers, should be responsible for helping students drowning in debt," she added.

Parker said the Biden administration is "shifting the burden to taxpayers, including those who didn't go to college or paid their student loans back" and allowing colleges to "escape responsibility for their actions creating the student loan crisis."