Biden Student Debt Plan Faces Legal Battle as Conservative Groups File Lawsuit, Citing Constitutional Concerns

The ambitious Biden student debt plan is facing fierce opposition as conservative groups filed a lawsuit in federal court, raising concerns over its constitutionality.

Biden Student Debt Plan Faces Legal Challenge from Conservative Groups

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The Biden student debt plan, aimed at erasing student loan payments for hundreds of thousands of Americans, has drawn sharp criticism from the New Civil Liberties Alliance (NCLA), representing the Mackinac Center and the Cato Institute. The lawsuit alleges that the Biden student debt plan, known as the “Saving on a Valuable Education” (SAVE) plan, violates federal law by bypassing public comment and participation in the rulemaking process, a claim fervently contested by the Department of Education. According to the attorneys representing NCLA, the Biden student debt plan administration’s SAVE plan runs afoul of the Constitution’s Appropriations Clause, which grants Congress the authority to decide on debt cancellations owed to the Treasury. Mark Chenoweth, president and general counsel of the NCLA, argued that the Biden student debt plan undermines the Public Service Loan Forgiveness Program (PSLF) enacted by Congress in 2007. Through permitting Biden student debt forgiveness in less than 10 years, the new plan removes the incentive for public sector and nonprofit workers to utilize PSLF, which allows loan forgiveness after a decade of service.

Supreme Court’s Rejection of Previous Program Sets Stage for New Biden Student Debt Plan

Constitutional Concerns Surround Biden’s Student Debt Erasure Proposal (PHOTO: Christian Hume)

This legal challenge comes just weeks after the Supreme Court struck down a different Biden student debt forgiveness program proposed by the Biden administration. The latest measure, part of the U.S. Department of Education’s efforts to streamline repayment paths, could potentially cancel a staggering $39 billion in federal student loans for over 804,000 borrowers who have been in a repayment plan for more than 20 years. Despite the administration’s efforts to address the student debt crisis, conservative groups remain steadfast in their belief that the plan disregards the role of Congress in shaping such significant policies. As the lawsuit unfolds in the courts, the fate of the Biden student debt plan remains uncertain. Supporters of the plan argue that swift action is necessary to alleviate the burden of student loans on millions of Americans, while opponents stand firm in their belief that it infringes upon constitutional principles. The case will be closely watched by both proponents and critics, as it could have far-reaching implications on the future of student loan forgiveness programs and the balance of power between the executive and legislative branches.

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