Watchdog challenges new Biden student loan plan

The New Civil Liberties Alliance (NCLA) on Friday challenged the Biden administration's most recent attempt at student loan debt forgiveness.

After the Supreme Court struck down Biden's initial debt forgiveness plan, the administration rolled out its new Saving on Valuable Education (SAVE) initiative, an income-driven repayment plan.

"The [Public Service Loan Forgiveness] and IDR statutes require borrowers to make a certain number of monthly payments before earning forgiveness," said NCLA Litigation Counsel Sheng Li, The Hill reported. "By trying to count non-payments as payments, the strategy seems to be to cancel $39 billion faster than a court can review and stop this blatantly unlawful act."

Li also contended that the Department of Education violated the Administrative Procedure Act by not putting the plan through the required notice-and-comment period and instead simply announcing it in a press release.

The NCLA has filed suit against the plan, arguing it violates the Appropriations Clause of the Constitution, which grants Congress the authority to direct the Treasury's debt management. The group made the challenge in the U.S. District Court for the Eastern District of Michigan on behalf of the Cato Institute and the Mackinac Center for Public Policy.

The Supreme Court in June struck down Biden's initial debt forgiveness plan, which had promised up to $10,000 in debt relief for most borrowers and up to $20,000 for Pell Grant recipients.

Ben Whedon is an editor and reporter for Just the News. Follow him on Twitter.