The Biden Administration May Illegally Cancel Student Debt This Week, Lawsuit Claims
A new lawsuit filed by a coalition of Republican-led states has alleged that the Biden administration has illegally directed student loan servicers to begin canceling student loans. The suit, filed Tuesday, claims that Secretary of Education Miguel Cardona is attempting to enforce new changes to the federal student loan program that have yet to be finalized. If true, these actions would constitute a brazen violation of federal law—and show just how desperate the Biden administration is to enact mass student loan forgiveness, despite legal constraints.Â
“This is the third time the Secretary has unlawfully tried to mass cancel hundreds of billions of dollars in loans,” the complaint reads. “Courts stopped him the first two times, when he tried to do so openly. So now he is trying to do so through cloak and dagger.”
Joe Biden has spent much of his presidency pushing mass student loan forgiveness. In 2022, he announced an ambitious plan for one-time student debt forgiveness of up to $20,000 per borrower. That plan was struck down at the Supreme Court. Another key element of Biden’s forgiveness agenda—an income-driven repayment plan called the SAVE plan that would have allowed many borrowers to receive forgiveness after paying back only a small portion of their loans—was blocked by several federal courts in June and July.
However, these setbacks haven’t seemed to deter the Education Department. In April, Cardona released a set of proposed rules that would effectively usher in mass student loan forgiveness. The rules would target specific groups for forgiveness: borrowers whose balances have grown due to unpaid interest, borrowers who would be eligible for forgiveness had they enrolled in an income-dri
Article from Latest
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.