Brown County Taxpayers Association challenged Joe Biden’s plan to forgive student loans to the Supreme Court. The Wisconsin Institute for Law and Liberty is representing it in this case.
The group requested two lower courts to block Biden from giving out student loans, but both were denied
The taxpayer group has filed an emergency motion since Monday’s opening for the loan forgiveness program. Justice Amy Coney Barrett is authorized to issue a stay. This would allow the entire court to hear the case.
Lawyers for the group argued in a Supreme Court filing that the implementation of the program would result in a “staggering financial loss” for the US Treasury and taxpayers.
They stated that they were seeing a “massive increase in national debt” as a result of a complete disregard for constitutional spending authority limits.
Biden’s administration claims Congress gave the Secretary of Education power to discharge student loans under 2003’s Heroes Act.
The Independent Congressional Budget Office estimates the value of Biden’s student loan forgiveness program at $400 billion.
Six Republican states have also challenged Joe Biden’s unconstitutional debt forgiveness plan. They claim that Biden doesn’t have the authority to cancel debt but that it would be detrimental to the states if the plan was allowed to continue.
The states claimed that the Biden administration was not legally authorized to grant student loan forgiveness.
The states also claim that the policy will harm their financial situation and the revenue of MOHELA (a Missouri-based student loans servicer).
According to the lawsuit, “The loan forgiveness policy encourages borrowers to consolidate Federal Family Education Loans owned by MOHELA into Direct Loans owned by the government. This ‘deprives them’ (MOHELA) of the ongoing income it receives servicing these loans. ”
Even the most passionate Biden supporters believe that the president does not have the power to cancel the debt. If the Wisconsin group proves that they were personally injured by the debt forgiveness program, the Supreme Court will likely dismiss this case.
Joe Biden still needs to work before his debt forgiveness program can be activated. Congress must act to end this nonsensical violation of the Constitution.