The White House calls a lawsuit to block student loan forgiveness ‘baseless’ because anyone can opt out of relief

  • Post author:
  • Post category:Uncategorized

President Joe Biden delivered remarks from Wilkes Barre, Pennsylvania on Tuesday promoting his Safer America Plan.AP Photo/Evan Vucci A conservative legal organization sued the Education Department over Biden's debt relief plan.  The White House said that suit's claims are "baseless" in a statement to Insider.  The suit likely has no standing, experts told Insider, because the plaintiff can opt out of relief. A conservative group is challenging the legality of President Biden's impending cancellation of student debt for millions of borrowers, and the White House categorically denied all of its claims.   The Pacific Legal Foundation, a conservative nonprofit legal organization, announced…

Continue ReadingThe White House calls a lawsuit to block student loan forgiveness ‘baseless’ because anyone can opt out of relief

The First Lawsuit Challenging Biden’s Student Loan Forgiveness Plan

  • Post author:
  • Post category:Uncategorized

Earlier today, Pacific Legal Foundation (PLF) public interest lawyer Frank Garrison filed the first meaningful lawsuit challenging President Biden's loan forgiveness plan, which the Congressional Budget Office estimates would cost some $400 billion. PLF, a libertarian-leaning public interest firm that is also my wife's employer, is representing Garrison. The Biden Administration Office of Legal Counsel argues that the loan forgiveness plan is authorized by a provision of the 2003 HEROES Act, which gives the Secretary of Education the power to "waive or modify" federally funded student debt obligations of borrowers whose ability to pay off the debt has been undermined…

Continue ReadingThe First Lawsuit Challenging Biden’s Student Loan Forgiveness Plan

Biden’s Student Loan Debt Forgiveness Plan Now Estimated To Cost $400 Billion

  • Post author:
  • Post category:Uncategorized

President Joe Biden's sweeping student loan forgiveness plan will wipe all the budget savings created by the Inflation Reduction Act—and then some. In a letter published on Monday, the Congressional Budget Office (CBO), a nonpartisan federal agency, estimated that Biden's student loan debt forgiveness plan will increase the cost of student loans by $400 billion. That's more than the White House originally projected, and it means that the fiscally imprudent debt relief effort will end up swamping the modest budgetary savings achieved by last month's passage of the Inflation Reduction Act by more than $150 billion. The letter notes that this…

Continue ReadingBiden’s Student Loan Debt Forgiveness Plan Now Estimated To Cost $400 Billion

A conservative group is suing to block Biden’s student debt forgiveness, but it faces legal hurdles

  • Post author:
  • Post category:Uncategorized

U.S. President Joe Biden, joined by Education Secretary Miguel Cardona, speaks on student loan debt in the Roosevelt Room of the White House August 24, 2022 in Washington, DC. President Biden announced steps to forgive $10,000 in student loan debt for borrowers who make less than $125,000 per year and cap payments at 5 percent of monthly income.Alex Wong/Getty Images The Pacific Legal Foundation announced Tuesday it was filing suit against student loan relief. The conservative legal organization argues that the president is "usurping" Congress's power to make laws. But the plaintiff's concern over automatic relief and accompanying tax bills…

Continue ReadingA conservative group is suing to block Biden’s student debt forgiveness, but it faces legal hurdles

The average student loan borrower will see their monthly bill drop by up to $300 a month when payments restart, says the Education Department

  • Post author:
  • Post category:Uncategorized

Borrowers will see monthly payments drop.Camille Tokerud/Getty Images President Biden is forgiving up to $20,000 in student loans for federal borrowers making under $125,000. A Department of Education official said borrowers who see relief, monthly payments will shrink. The average  President Joe Biden's student loan relief will give some borrowers a bit more relief when payments start back up again in January, according to the Department of Education.In a video posted Monday, CJ Powell, the chief of staff for the Office of Postsecondary Education, outlined what borrowers can expect next year. For those who still have a balance after Biden's…

Continue ReadingThe average student loan borrower will see their monthly bill drop by up to $300 a month when payments restart, says the Education Department

Conservative Legal Group Sues To Block Biden’s Student Loan Forgiveness

  • Post author:
  • Post category:Uncategorized

A conservative legal group is suing the Biden administration to block what it says is the president’s illegal and unconstitutional plan to cancel hundreds of billions of dollars in student loan debt. Pacific Legal Foundation on Tuesday asked a federal court in Indiana to stop the Department of Education from forgiving $500 billion of student debt beginning in October. The group says President Joe Biden is abusing a 2003 law meant to forgive student loans for veterans or service members in times of war or "national emergency." The Biden administration claims the coronavirus pandemic constitutes a national emergency. The lawsuit…

Continue ReadingConservative Legal Group Sues To Block Biden’s Student Loan Forgiveness

‘Flagrantly Illegal’: Law Firm Files Lawsuit To Stop Biden’s Student Loan Forgiveness

  • Post author:
  • Post category:Uncategorized

President Joe Biden's plan to forgive hundreds of billions of dollars in student loan debt violates both federal law and the Constitution, according to a just-filed lawsuit from the Pacific Legal Foundation (PLF), a libertarian law firm. "This isn't how laws are supposed to be made," Caleb Kruckenberg, an attorney for PLF, tells Reason. "Only Congress has the power to pass laws and spend money under the Constitution. The administration's actions here are flagrantly illegal." This is the first serious challenge to Biden's student loan forgiveness plan, which he announced last month. The lawsuit's plaintiff is Frank Garrison, who's also an…

Continue Reading‘Flagrantly Illegal’: Law Firm Files Lawsuit To Stop Biden’s Student Loan Forgiveness

WH Econ. Adviser: Canceling Loan Debt Is Putting a Log on the Fire with Inflation and Demand, But We Take an Equal-Sized Log Off

  • Post author:
  • Post category:Uncategorized

On Monday’s broadcast of CNBC’s “Squawk Box,” White House Council of Economic Advisers member Jared Bernstein stated that forgiving student loans does put a log on the fire of demand and inflation, but it’s canceled out by restarting payments on

Continue ReadingWH Econ. Adviser: Canceling Loan Debt Is Putting a Log on the Fire with Inflation and Demand, But We Take an Equal-Sized Log Off