Lawsuit: Group Sues to Block Joe Biden’s Student Loan Forgiveness

Breaking Digest reported, back in August, that Joe Biden announced his student loan forgiveness plan.

Biden canceled up to $10,000 in student debt for borrowers who earn $125,000 a year or less and up to $20,000 for recipients of Pell Grants.

An Indiana-based lawyer, Frank Garrison, who works for a conservative-leaning law firm, sued the federal government Tuesday to block Biden’s student loan forgiveness program in its first major legal challenge.

Lawyers for Garrison argued that Biden’s plan violates the Constitution and federal law, partly because it circumvents Congress, and that the Department of Education has no lawful authority to issue the rule. In addition, they argue that people like Garrison will be worse off because of the cancellation of student debt. Garrison, specifically, has been seeking to have his student loan debt forgiven through the Public Service Loan Forgiveness program after making 10 years of payments.

Fox News reported:

A public interest attorney filed a lawsuit Tuesday morning against the Department of Education to block President Biden’s “illegal” move to cancel more than $500 billion in student loan debt.

Biden, last month, announced that he would cancel $10,000 of federal student loan debt for certain borrowers making less than $125,000 per year, and up to $20,000 for Pell Grant recipients.

Frank Garrison, an attorney at Pacific Legal Foundation, brought the suit against the Department of Education Tuesday in the U.S. District Court for the Southern District of Indiana.

Garrison and his attorneys at the Pacific Legal Foundation filed a temporary restraining order to prevent the loan handout from going into effect.

Garrison qualifies for the congressionally authorized Public Service Loan Forgiveness program, meaning he will receive debt forgiveness after making 10 years of payments on his student loans.

The Biden administration’s new handout would stick Garrison with a new state tax bill which he would not have under his existing PSLF program, as Indiana plans to tax the upcoming student loan cancelation as income.

His lawyers argue Garrison “will be stuck with a tax bill that makes him financially worse off than continuing with his repayment program under PSLF.” 

“He did not ask for cancelation, doesn’t want it, and has no way to opt out of it,” the Pacific Legal Foundation said in a release Tuesday.

The Biden Regime responded to the legal challenge on Tuesday and sought to dismiss the lawsuit.