President Joe Biden may want to put his Ray-Bans back on to not see the mounting opposition to his student-loan giveaway scheme.
The Associated Press on Monday reported that another group has sued Biden over his plan to erase up to $10,000 in student-loans debt for people making up to $125,000 a year, and up to $20,000 for people in that group who received federal Pell Grants.
The policy, if implemented, would shift the burden to repay the loans from the borrowers to all taxpayers. The plan comes with a price tag of between $240 billion and $1 trillion, depending on who’s providing the estimate.
The latest assault on Biden’s plan is a lawsuit by the Job Creators Network Foundation, which represents small businesses nationwide.
The lawsuit, according to the AP, failed to allow for public comment under the federal Administrative Procedure Act. The Job Creators Network sued on behalf of two plaintiffs. One fails to qualify for debt relief because Biden has excluded commercially held loans that aren’t in default. The other did not receive a Pell Grant and thus asserts the debt burden is being repealed unequally.
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In the lawsuit, the plaintiffs claim that Biden hatched the plan on “arbitrary decisions” that were made behind closed doors and in the end mean “some will benefit handsomely, some will be shortchanged, and others will be left out entirely.”
Elaine Parker, president of Job Creators Network Foundation, told the AP Biden’s giveaway does nothing about the “outrageous increase in college tuition that outpaces inflation every single year,” and accordingly drives up student borrowing.
“This bailout is going to affect everyone in this country because of the mass size of the program,” Parker said. “And everyone should have the opportunity to provide their views to the government.”
The AP also noted the other legal actions that have Biden’s plan in their crosshairs.
Six states — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — sued Biden for going beyond his authority in claiming the debt could be wiped away under a 2003 law that was intended to forgive debts owed by military personnel and first reponders who could ot repay in the wake of the 9/11 terrorist attacks.
The states also maintained that Biden said the plan was needed to provide relief from the economic malaise caused by COVID-19, but then in a recent interview declared that the pandemic was “over.”
The AP also noted that the conservative Pacific Legal Foundation sued on behalf of a client in Indiana who will be forced to pay higher taxes. Indiana and other states have announced that they will treat the amount of borrowers’ relief under the loan giveaway as income and tax it accordingly.