A conservative group called the Job Creators Network Foundation filed a lawsuit in federal court in Fort Worth in October, arguing that the Biden administration violated federal procedures by failing to solicit public input on the program. The lawsuit was filed on behalf of two borrowers — one who allegedly did not qualify for the relief and another who allegedly did not qualify for the maximum $20,000 debt forgiveness. The lawsuit alleges the Biden administration violated federal procedures by denying borrowers the opportunity to submit public comments before the program began. U.S. District Judge Mark Pittman, who was appointed by former President Donald Trump, declared the program “unlawful,” citing the 2002 Higher Education Opportunity for Students (HEROES) Act, which gives the Department of Education the ability to grant waivers to financial aid recipients. . “This case involves the question of whether Congress — through the HEROES Act — gave the secretary [of Education] authority to implement a program providing debt relief to millions of student loan borrowers totaling more than $400 billion,” Pittman wrote in his ruling. for the program proposed by the secretary”. The Justice Department said it would appeal the decision.
“We strongly disagree” with the decision, White House press secretary Karin Jean-Pierre said in a statement late Thursday. “The president and this administration are determined to help working and middle-class Americans get back on their feet, while our opponents—backed by extreme Republican special interests—have sued to prevent millions of Americans from getting much-needed relief.” , the announcement states. partially. Thursday’s order is the latest in a series of legal challenges to the Biden administration’s program, which began in October. The White House said last week that nearly 26 million Americans have provided information to the Department of Education about potential debt relief. “This decision protects the rule of law that requires all Americans to have their voices heard by their federal government,” Elaine Parker, president of the Job Creators Network Foundation, said in a statement after the ruling. “This attempted illegal student loan bailout would have done nothing to address the root cause of unaffordable tuition: greedy and bloated colleges that raise tuition far more than inflation year after year while raking in $700 billion in endowments .We hope that today’s court decision will lay the groundwork for real solutions to the student loan crisis.” Mr. Biden announced the debt relief plan in August, which can forgive up to $20,000 of debt for Americans making less than $125,000 individually or $250,000 per couple. The 8th Circuit Court of Appeals in October temporarily halted the program in response to an urgent motion by lawyers for several Republican-led states after a lower court ruled their September lawsuit to halt the debt relief program was invalid.