The new date is Sept 27, 2022, 02:50pm.
An Indiana attorney from a conservative law firm sued the Biden Administration in federal court Tuesday, asking a judge to block the government's policy of forgiveness of up to $20,000 per person in student loans days before it takes effect in October.
The White House is in Washington, DC, on August 24.
Frank Garrison, an attorney with the libertarian Pacific Legal Foundation, filed a request in federal court in Indiana to block the policy before it takes effect on Saturday.
Garrison has student loans that were being forgiven through the Public Service Loan Forgiveness program, which allows his debts to be wiped away without paying any federal or state tax on them, but he lives in one of at least six states that tax most canceled loans as income.
Garrison claims the president's student loan forgiveness will result in him paying $1,000 in state taxes and incur a financial obligation that he wouldn't have faced.
The student loan program should have been approved by Congress and the White House overstepped its authority in implementing it, according to the conservative attorney.
The federal government is accused of violating the Administrative Procedure Act, separation of powers under the Constitution and the non-delegation doctrine.
The lawsuit is baseless because people can opt out of the debt relief and no one will be forced to have their loans forgiven, according to the White House.
The lawsuit says nothing about loan cancellation is appropriate. The administration is threatening to pass a profound and transformational policy that will have untold economic impacts.
This group brings a baseless claim. Hasan told Forbes about the case. The debt relief plan will provide needed relief to working families because opponents are attempting to stop it.
Roughly $400 billion. The Congressional Budget Office estimates how much the student loan forgiveness program will cost.
The student loan forgiveness plan will begin in October. The program only applies to people making less than $125,000 annually, but the administration says that debt will be canceled for approximately 8 million borrowers. The application is going to be launched in October.
After months of speculation, the federal government will forgive student loans. For people earning less than $125,000 a year, or $20,000 in debt, the forgiveness program will help. The Biden Administration pointed to the federal HEROES Act, which was enacted in response to the Iraq War, to justify the move. The Washington Post reported that Republicans have been scheming on how to challenge the program in court. Conservatives faced a problem with how to fight the policy because they needed a valid reason to bring the litigation and claim they were harmed by the program. State attorneys general wouldn't be able to show up in court. His lawsuit is not the first to be filed against the forgiveness program, after an Oregon homeowner and former GOP Senate candidate sued the government, claiming the law will raise the interest he pays on his mortgage
Here are all the other details of Biden's student loan forgiveness plan.
Biden's student debt forgiveness plan will cost $400 billion.
Republicans are going to file lawsuits to block Biden's plan.
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