Libertarian group sues to block student debt cancellation

m.knox

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Nancy herself said it was out of bounds, but Biden wants to be KING.

https://news.yahoo.com/libertarian-group-sues-block-student-152930872.html

A libertarian group in California filed a legal challenge to President Joe Biden’s plan for student debt cancellation on Tuesday, calling it an illegal overreach that would increase state tax burdens for some Americans who get their debt forgiven.

The lawsuit, believed to be the first targeting Biden’s plan, was filed by the Pacific Legal Foundation, a Sacramento legal advocacy group. It was filed in federal court in Indiana, one of several states that plan to tax any student debt canceled by Biden’s plan.

“Congress did not authorize the executive branch to unilaterally cancel student debt,” said Caleb Kruckenberg, an attorney at the Pacific Legal Foundation. He said it’s illegal for the executive branch to create the policy “by press release, and without statutory authority.”
 

The Spin Meister

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Nov 27, 2012
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An altered state
Nancy herself said it was out of bounds, but Biden wants to be KING.

https://news.yahoo.com/libertarian-group-sues-block-student-152930872.html

A libertarian group in California filed a legal challenge to President Joe Biden’s plan for student debt cancellation on Tuesday, calling it an illegal overreach that would increase state tax burdens for some Americans who get their debt forgiven.

The lawsuit, believed to be the first targeting Biden’s plan, was filed by the Pacific Legal Foundation, a Sacramento legal advocacy group. It was filed in federal court in Indiana, one of several states that plan to tax any student debt canceled by Biden’s plan.

“Congress did not authorize the executive branch to unilaterally cancel student debt,” said Caleb Kruckenberg, an attorney at the Pacific Legal Foundation. He said it’s illegal for the executive branch to create the policy “by press release, and without statutory authority.”
Even the IRS considers cancelled debt as income and taxes it as such. So forgiving $10,000 can suddenly add a lot of taxes due their next filing date.
 
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m.knox

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6 states are suing...... Meanwhile the hard core left loves their KING.

Biden administration scales back student loan forgiveness plan as states sue​


https://www.cnn.com/2022/09/29/politics/biden-student-loan-forgiveness-plan-lawsuit/index.html

@UnfaithfullyYours is going to start crying.

The Biden administration scaled back eligibility for its student loan forgiveness plan Thursday, the same day six Republican-led states sued President Joe Biden in an effort to block his student loan forgiveness plan from taking effect.

Borrowers whose federal student loans are guaranteed by the government but held by private lenders will now be excluded from receiving debt relief. Around 770,000 people will be affected by the change, according to an administration official.

The Department of Education initially said these loans, many of which were made under the former Federal Family Education Loan program and FEderal Perkins Loan program, would be eligible for the one-time forgiveness action as long as the borrower consolidated his or her debt into the federal Direct loan program.

On Thursday, the department reversed course. According to its website, privately held federal student loans must have been consolidated before September 29 in order to be eligible for the debt relief.

Borrowers with privately held federal student loans who have not consolidated yet are currently out of luck, though the Department of Education said it “is assessing whether there are alternative pathways” to provide relief.

Borrowers with privately held federal student loans represent a small portion of the 43 million federal student loan borrowers. There are about 4 million borrowers with Federal Family Education Loans, but not all of those people are likely eligible for the loan forgiveness plan, which also includes an income requirement.

“Our goal is to provide relief to as many eligible borrowers as quickly and easily as possible, and this will allow us to achieve that goal while we continue to explore additional legally-available options to provide relief to borrowers with privately owned FFEL loans and Perkins loans, including whether FFEL borrowers could receive one-time debt relief without needing to consolidate,” the Department of Education said in an emailed statement.