Judge Pauses Biden/Harris Admin’s Unpublished Plan To Cancel More Student Debt

A coalition of seven Republican-led states preemptively sued to stop the plan

By Bill Pan | The Epoch Times

A federal judge in Georgia has temporarily blocked the Biden administration from implementing its latest plan to bring widespread federal student loan cancellation for up to 30 million borrowers.

The 14-day restraining order was handed down Sept. 5, two days after a coalition of seven Republican-led states preemptively sued to stop the plan, claiming that the federal government is “unlawfully trying to mass cancel hundreds of billions of dollars of loans” and planning to do so by Sept. 7.

The plan in question, popularly known as “Plan B,” has been in the works since last summer, when the U.S. Supreme Court struck down the initial effort by the Biden administration to offer a blanket cancellation of up to $400 billion in student loans. It has yet to be published, although borrowers were asked last month to confirm whether they want to opt-out.

According to the U.S. Department of Education, Plan B would primarily benefit those who owe more than they originally borrowed due to accrued interest. It would erase up to $20,000 beyond the principal balance, regardless of the borrower’s income. Some 23 million may even see their entire interest balances eliminated.

The Education Department could also forgive the debt of those who have been repaying for at least 20 or 25 years, those who qualify for loan forgiveness under other programs but haven’t applied, and those who attended schools that lost access to federal aid, suddenly closed, or left graduates financially worse off.

A fifth category of borrowers would get their debt forgiven based on certain “hardships” that persist after other benefits are exhausted, such as medical debt and expensive child care. The specifics are still under review.

The seven-state coalition, led by Missouri Attorney General Andrew Bailey, argued that the Education Department lacks the rule-making authority to cancel debt at such a large scale. It noted that the department’s income-driven loan repayment program, dubbed SAVE, is also halted while an appeals process over its legality plays out.

“This is the third time the Secretary has unlawfully tried to mass cancel hundreds of billions of dollars in loans,” their complaint read.

“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.”

Judge J. Randal Hall of the Southern District of Georgia sided with the states. His order paused Plan B pending a Sept. 18 hearing.

“Plaintiffs show a substantial likelihood of success on the merits given the rule’s lack of statutory authority,” the judge wrote.

Bailey welcomed the decision, calling it a “huge victory” for Americans who have already paid off their student loans or didn’t go to college at all.

“I paid for my education in blood, sweat, and tears in service to my country, so this fight is personal for me,” he said in a statement.

“We will continue to lead the way for working Americans who are being preyed upon by unelected federal bureaucrats in Washington D.C.”

The lawsuit is joined by the attorneys general of Alabama, Arkansas, Florida, Georgia, North Dakota, and Ohio.

The Education Department didn’t immediately respond to a request for comment.

*********

(TLB) published this article by By Bill Pan as posted at The Epoch Times

Header featued image (edited) credit: Judges Gavel/WP open public file

Emphasis added by (TLB)

••••

••••

Stay tuned tuned…

••••

The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)

••••

Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.

••••

Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.

••••

Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.