The controversial student loan forgiveness scheme of President Biden is being challenged as unlawful in court by many organizations. Some of the claims relate to the basing of the program on the HEROES Act.
The government’s student-loan forgiveness application portal went online last month, and legal challenges are being filed against the idea. The website reportedly makes it simple to request for debt cancellation.
“After conducting beta testing over the weekend, President Joe Biden — alongside Education Secretary Miguel Cardona — announced that the application website is officially live, and borrowers can apply for up to $20,000 in debt relief that will start being processed by the Education Department. During his remarks, Biden noted that over 8 million borrowers applied over the weekend without a glitch or any difficulty,” Business Insider reported.
“It means more than 8 million Americans are starting this week on their way to receiving life-changing relief,” Biden said. “Millions more are going to have the opportunity to do it as well. As millions of people fill out the application, we’re going to make sure the system continues to work as smoothly as possible.”
The Insider article said, “Borrowers who submitted their applications during the beta testing period do not need to resubmit — their forms will now begin getting processed. As Biden noted, it takes just five minutes to apply — borrowers just need to enter basic information like their names, email addresses, and Social Security numbers. The department recommends applying before mid-November to ensure relief hits borrowers’ accounts before payments resume in January 2023.”
The timing of the program’s launch soon before the midterm elections implies that Democrats and Republicans who are incensed by the program will be targeted for votes on Tuesday. The scheme has already been challenged in court.
“Experts believe that one challenge – brought by six states – will likely eventually make it to the high court because it has the fewest procedural hurdles. That case is currently before the 8th US Circuit Court of Appeals, which has issued an administrative stay of the program while it considers the state’s request for a preliminary injunction,” according to the news source. The site noted that for the time being, Americans can still apply for the loan forgiveness program.
Last month, Supreme Court Justice Amy Coney Barrett denied one of the motions, and that decision is currently being appealed.
“Conservative Justice Amy Coney Barrett rejected the motion from a Wisconsin group without offering an explanation. The Brown County Taxpayers Association filed the motion Wednesday, asking the court to immediately pause the loan relief program while it moves forward with litigation against the Biden Administration,” Forbes reported.
“A federal district court tossed a lawsuit from the group aiming to stop the program, which they have since appealed to the 7th Circuit Court of Appeals. The motion to the Supreme Court argued the program should be halted immediately because Biden overstepped his authority by authorizing loan forgiveness, which they claimed will lead to a gargantuan increase in the national debt,” the outlet added.
According to CNN, on Friday, Justice Barrett also denied a second case, a request filed by the Pacific Legal Foundation.
Conservative Brief notes that the Biden administration’s initiative remains barred for the time being, despite the application being available on the new website and the objections being considered in court.
Biden commented on the looming litigation on Monday, stating that he does not believe the opposition groups have legal standing.
More on this story via The Republic Brief:
“I will never apologize for helping working Americans and middle-class people as they recover from the pandemic,” Biden said. “Especially not the same Republicans who voted for a $2 trillion tax cut in the last administration.”
Scott Buchanan, executive director of the Student Loan Servicing Alliance, told Business Insider that loan companies can’t predict when borrowers may get relief because they are not involved in the implementation process of the plan under the Biden administration. CONTINUE READING…