Brief filed with Supreme Court argues student loan forgiveness program exceeds Biden’s authority

An Ohio organization is chiming in on the debate about student loan forgiveness, arguing that the Biden administration has overstepped its bounds in creating such a program.

The Buckeye Institute, an independent think tank that champions free market ideas, filed an amicus brief with the U.S. Supreme Court on Friday. The nation’s top court is scheduled to hear arguments at the end of the month on two cases regarding the policy unveiled by President Joe Biden last August.

David Tryon, the director of litigation at the Columbus-based organization, said the plan to cancel thousands of dollars in student loan debt “is likely illegal” and may harm millions of Americans financially.

“Before the U.S. Supreme Court is an opportunity to end this illegal program and tell the federal government it cannot forgo collecting nearly $500 billion in debt without congressional approval,” Tryon said.

Under the Biden initiative, Pell Grant recipients are eligible for up to $20,000 in loan forgiveness, while other borrowers are eligible for up to $10,000 of their student loans being relieved. To qualify, borrowers must earn less than $125,000 or have a household income of less than $250,000. Most federally backed student loans would be eligible for the forgiveness program.

The White House has estimated that as many as 40 million borrowers may be eligible for some form of relief, with more than 60% of those individual Pell Grant recipients.

The institute itself is involved in another case pertaining to the policy. It represents Amanda Latta, one of its employees who says she qualifies for the forgiveness program, in a case filed in an Ohio federal court in December.

Latta is suing the U.S. Department of Education, saying she faces potential damages if she applies for loan forgiveness and it’s ultimately ruled unconstitutional. Applying for forgiveness that may be revoked later could expose her loans to higher interest rates and default penalties under the terms of her loan agreement, she and the institute argue.

Last month, Latta filed for an injunction to block the government from implementing the loan forgiveness program. However, U.S. District Judge Michael Watson on Jan. 27 issued a stay in the case pending the Supreme Court’s decision on the cases it’s reviewing.