Two conservative groups filed a lawsuit to block Joe Biden’s student loan bailout workaround.
The groups are seeking to block Joe Biden’s plan to cancel $39 billion in student loans for 800,000 borrowers.
The US Supreme Court last month crushed Joe Biden’s student loan bailout program.
Joe Biden unilaterally announced a massive forgiveness of student loans last August to buy the Gen Z-Millennial vote in the 2022 midterms.
Biden canceled over $400 billion in student loans which turned out to be 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.
The Supreme Court ruled 6-3 against Joe Biden’s student loan relief program so the Department of Education rolled out a workaround plan to cancel $39 billion in student loans by counting non-payments as payments for a period of time.
The lawsuit alleges Joe Biden’s new forbearance program is illegal because it was not authorized by Congress.
The Education Department said they are “not going to back down” in response to the lawsuit.
AP reported:
Two conservative groups are asking a federal court to block the Biden administration’s plan to cancel $39 billion in student loans for more than 800,000 borrowers.
In a lawsuit filed Friday in Michigan, the groups argue that the administration overstepped its power when it announced the forgiveness in July, just weeks after the Supreme Court struck down a broader cancellation plan pushed by President Joe Biden.
It asks a judge to rule the cancellation illegal and stop the Education Department from carrying it out while the case is decided. The suit was filed by the New Civil Liberties Alliance on behalf of the Mackinac Center for Public Policy and the Cato Institute.
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