A conservative legal group today sued to block the Biden admin's student debt relief plan — the first major legal challenge to a policy that’s expected to be litigated extensively. The lawsuit argues the plan amounts to an illegal abuse of authority.
A conservative legal group on Tuesday sued to block the Biden administration from canceling large amounts of outstanding federal student debt for tens of millions of Americans, bringing the first major legal challenge to a policy that’s expected to be litigated extensively.to provide most federal student loan borrowers with up to $10,000 or $20,000 of debt relief amounts to an illegal abuse of authority.
Garrison argues that Biden’s debt relief would force him to pay state income tax that he would otherwise avoid. He says he is working towards having his federal student loans forgiven under a separate federal program — the Public Service Loan Forgiveness program — within the next several years. Any debt that Garrison eventually has forgiven under that program, according to the lawsuit, would not be treated as taxable income by Indiana tax authorities.
The Pacific Legal Foundation is also asking a federal judge for a preliminary injunction and temporary restraining order halting the program. It asked the judge to rule on that request before Oct. 1. The Biden administration has argued it has broad power to cancel student loans because of the national emergency declaration stemming from the Covid-19 pandemic. The administration released legal memos that argued the Education Department has the authority to cancel large amounts of debt to help borrowers respond to the effects of the pandemic.
The agency already has recent income information for those borrowers on file because they recently applied for federal student aid or, as Garrison did, provided their incomes to participate in an income-driven repayment plan. Steve Simpson, senior attorney at Pacific Legal Foundation, said in an interview that if Garrison is able to opt out of receiving the $20,000 of debt relief — and thus avoid Indiana’s state tax — it may complicate the legal challenge but not necessarily end it.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Grassroots group pushing DeSantis presidential run stuck in legal limboA group laboring to draft Ron DeSantis for a presidential run is building a valuable contact list that the Florida governor could mine for donations if he runs in 2024. The only problem is it may not be legal.
Read more »
‘CannaBus' Tour to Educate Texans on Legal Marijuana AccessA licensed medical marijuana dispensary that is headquartered in Texas is touring across the state in October to educate the public on accessing legal cannabis.
Read more »
Greenland Minerals dealt setback in legal fight for rare earth project licenceIn March, the miner took the governments of Greenland and Denmark to court for the legislation passed last year that banned uranium mining.
Read more »
One of the last women to get a legal abortion in Arizona tells her story | CNN“What then? I keep this baby and I lose my life? And I can’t be there for my other two sons? One of the last women to get a legal abortion in Arizona spoke to CNN about her decision and her anger at politicians getting involved.
Read more »