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This Tuesday it was revealed that the law firm Pacific Legal Foundation (PLF) filed a lawsuit to stop Joe Biden’s administration’s policy of forgiving hundreds of billions of dollars in student loan debt.
According to the firm, the measure violates federal law and the Constitution. A lawyer for the firm spoke to Reason and argued that the decision is beyond the government’s authority.
“Only Congress has the power to pass laws and spend money under the Constitution. The administration’s actions here are flagrantly illegal,” Caleb Kruckenberg said.
In addition, the lawsuit details that “despite the staggering scope of this regulatory action, it was taken with breathtaking informality and opacity.” It explained that with the promptness of the policy, new problems were created for borrowers in at least six states that tax loan charge-offs as income.
“The administration’s slapdash, lawmaking-by-press-release approach to student debt cancellation threatens to leave tens of thousands of borrowers stuck with a tax bill on money they’ll never see in states like Indiana, where it will be taxed as income,” Kruckenberg noted.
Biden and student loans
President Biden announced in August that he would forgive part of the debt owed to the federal government by millions of college students. The decision is reportedly a policy aimed at winning the youth vote just a few months before the legislative elections.
The President announced the cancellation of up to $10,000 of debt per student, but this measure will only benefit those who earn less than $125,000 a year or those who, being married, earn less than $250,000 a year.
Williams Perdomo es periodista y escritor, especializado en las fuentes Política y Cultura.