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Shop NowIt appears that President Joe Biden’s student loan bailout plan is being met with some resistance.
Two conservative groups — the Mackinac Center for Public Policy and the Cato Institute — have filed a lawsuit to block the president’s $39 billion student loan forgiveness program, which was announced in July.
The lawsuit contests that the administration overstepped its power by implementing this program without congressional authorization.
President Joe Biden unveiled his much-anticipated student loan relief plan in an effort to buy votes from Gen Z and Millennial voters ahead of the 2022 midterms.
If approved, the plan would provide up to $10,000 in debt cancellation for borrowers earning less than $125,000 per year and up to $20,000 for recipients of Pell Grants.
However, things took a turn when the Supreme Court ruled 6-3 against Biden’s proposal last month.
In response to this ruling, the Department of Education rolled out a workaround plan — otherwise known as “forbearance program” — which seeks to cancel $39 billion in student loans by counting non-payments as payments for a period of time.
This is what sparked pushback from two conservative groups who argue that such action should not be taken without congressional approval first.
It is no secret that President Joe Biden has been pushing for progressive reforms since taking office however, certain policies must be authorized by Congress before they can be implemented or carried out officially.
According to conservatives groups behind this legal action, this should include any type of large scale debt cancellation programs like what we are currently seeing with this particular instance involving student loans.
As mentioned previously, it was only after the US Supreme Court crushed President Joe Biden’s original proposal that his administration sought other alternatives.
The Education Department responded saying they will not back down despite facing legal opposition here and it remains unclear how exactly all this will play out moving forward, particularly given how heated things are getting between both sides.
