Biden student debt relief faces another legal challenge
President Joe Biden and Education Secretary Miguel Cardona are defendants in their official capacities.
A Louisiana lawyer has mounted another legal challenge to the Biden administration's plan to cancel up to $20,000 in student loans for some borrowers.
The suit alleges that Biden lacks the constitutional authority to cancel the debt without action from the legislature, per the Epoch Times. Attorney Tommy Badeaux filed the suit in the New Orleans-based U.S. District Court for the Eastern District of Louisiana. The Publican Center for Justice and the Pelican Institute for Public Policy joined him in the suit.
President Joe Biden and Education Secretary Miguel Cardona are defendants in their official capacities. The suit also names the Department of Education as a defendant.
"You can’t carte blanche cancel half a trillion dollars of debts owed to the taxpayers without consulting them," said Pelican Institute CEO Daniel Erspamer, per the outlet. "That’s bad policy. And in this instance, it’s also illegal and unconstitutional. Congress and the people they represent should’ve been involved in a decision that will affect millions of Americans and do nothing to lower the cost of getting an education."
The suit follows a ruling for the U.S. 8th Circuit Court of Appeals that temporarily halted the plan's implementation, pending litigation, following a challenge from six Republican attorneys general.
Under the initiative, the federal government would forgive up to $10,000 for borrowers making under $125,000 per year and up to $20,000 for Pell Grant recipients. The Congressional Budget Office estimates the relief will cost taxpayers up to $400 billion.