(TheConservativeTimes.org) – The Department of Education (DOE) is under suit from conservative groups over President Biden’s new student loan forgiveness plan. After the Supreme Court (SCOTUS) dealt a setback to President Biden in Biden v. Nebraska, where they decided in a 6-3 ruling that the Secretary of Education cannot waive student loans using the HEROES Act, Biden created a new plan for student loan forgiveness.
In the new plan, the Biden administration intends to make a “one-time account adjustment,” which could classify nonpayment as a period during repayment, qualifying 804,000 borrowers and waiving up to $39 billion in loans. In short, this would forgive student loans made for 20 or 25 years as a portion of income-driven repayment plans under the public service loan forgiveness plan.
The Cato Institute and Mackinac Center for Public Policy, both free market and libertarian-oriented organizations, argue that the Biden administration has once again overstepped its authority. As such, they’re asking a judge in federal district court to block the new forgiveness plan until a ruling. In their lawsuit, brought by the New Civil Liberties Alliance (NCLA), they claimed that the DOE does not have the authority to count non-payments during the payment period, deeming the “one-time account adjustment” unlawful.
However, the DOE slammed the move as a right-wing motivated plot to keep borrowers in debt, doubling down on finding a way to forgive student loans. Already, the first set of borrowers eligible have been informed, and the DOE intends to continue to deem more borrowers eligible for forgiveness through 2024.
Critics argue that Biden’s push for student loan forgiveness is a political move ahead of the 2024 election. Recent polling from the MorningConsult shows Biden up 3-points to former President and Republican presidential frontrunner Donald Trump with 44% to 41%. With more than half of students in the US leaving school with debt, it proves to be a politically advantageous talking point.
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