Biden’s Student Loan Forgiveness Program Dodges Lawsuit

Using emergency provisions inspired in the aftermath of 9/11, Joe Biden recently announced a student loan forgiveness program. This waives between $10,000 to $20,000 worth of debts incurred by individuals who went to college.

In doing this, the forgiven loans are going to be passed onto taxpayers who didn’t agree to these loans and possibly already paid off their own debts from receiving higher education.

Many Americans are raising issues with this. It will worsen inflation, creating more economic instability during times when people are barely getting by.

Meanwhile, others have pointed out that Biden doesn’t have the legal authority to make this decision without congressional approval. Unfortunately, one lawsuit brought against the president’s student loan forgiveness program hasn’t panned out.

What to Know About the Failed Lawsuit
In Wisconsin, the Brown County Taxpayers Association sued Biden’s plan on the basis of it being discriminatory and too large of an expenditure. On the charge of discrimination, the taxpayer group pointed out how aspects of the forgiveness program are specifically tailored toward minority borrowers.

However, a federal judge didn’t agree. The George W. Bush appointee dismissed the lawsuit on a lack of standing. Specifically, it was determined that Brown County Taxpayers Association’s status as a taxpayer-based group isn’t enough to challenge Biden’s program.

Though this lawsuit failed, additional legal action is still very much in the works. Others suing Biden’s student loan forgiveness program warn that tax consequences and factors involving private banking create legal issues for what Biden’s trying to do.

Despite Biden using emergency provisions to force this program into action, he recently declared the COVID-19 pandemic is over. This, too, led to the president’s critics stating if the pandemic is truly finished, then there’s no basis for student loan forgiveness to proceed.

Bad News For America’s Economy
Biden’s plan to pass student loan debt onto everyday taxpayers amounts to roughly trillions in extra spending. Meanwhile, the United States continues to struggle with a recession, rising energy costs, and less security about the future.

If legal action against Biden’s program continues to fail, possible economic recovery will likely be sabotaged. Republicans are repeatedly warning about the consequences of the president’s program, but it’s falling on deaf ears at the White House.