Home News Biden’s Plan to Forgive Student Loans is Challenged by the First Lawsuit

Biden’s Plan to Forgive Student Loans is Challenged by the First Lawsuit


Frank Garrison, a Pacific Legal Foundation (PLF), public interest lawyer, filed today the first meaningful lawsuit against President Biden’s loan forgiveness program. The Congressional Budget Office estimated that it would cost around $400 billion. Garrison is represented in this case by PLF (a libertarian-leaning, public interest firm which is also my spouse’s employer).

Biden Administration Offices of Legal Counsel argues this loan forgiveness plan is authorized under a provision of 2003 HEROES Act. This law gives the Secretary Education the power to “waive and modify” federally-funded student debt obligations of borrowers whose financial ability has been impaired by a national emergency or war (in this instance, the Covid-19 Pandemic). For reasons  I outlined in a previous post, the Biden plan goes far beyond what the statute authorizes, and is also at odds with the “major questions” doctrine and nondelegation constraints on executive power. This situation is very similar to Donald Trump’s attempt at using emergency powers to usurp Congress’ spending power to divert military funding to build his border wall. (which, for record, I opposed at that time; see here and here). PLF’s just-filed complaint on behalf of Garrison  advances the statutory authorization, major questions, and nondelegation…

More information can be found here

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