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Tags: joe biden | student loan forgiveness | ted cruz | gop

WH Calls Out GOP for Mulling Student Debt Forgiveness Lawsuit

WH Calls Out GOP for Mulling Student Debt Forgiveness Lawsuit

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By    |   Friday, 02 September 2022 05:29 PM EDT

The Biden administration is calling out Republicans who are weighing legal action over President Joe Biden's recent decision to forgive the federal student loans of up to 43 million Americans.

Accusing the GOP of hypocrisy, White House spokesman Abdullah Hasan said the party was trying to punish the middle class.

"Let's be clear about what they would be trying to do here: The same folks who voted for a $2 trillion tax giveaway for the rich and had hundreds of thousands of dollars of their own small business loan debt forgiven would be trying to keep millions of working middle-class Americans in mountains of debt," Hasan told CNBC.

The White House announced last week that the Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for married couples.

According to the Biden administration, the full remaining student loan balance could be canceled for approximately 20 million borrowers, while the action could provide relief to up to 43 million borrowers.

Republican attorneys general from Arizona, Missouri and Texas, as well as Sen. Ted Cruz, R-Texas, and those associated with conservative think tank The Heritage Foundation are mulling their next step as they try to thwart the president's move.

According to CNBC, the issue could go all the way to the U.S. Supreme Court.

In an appearance on "The Liz Wheeler Show," Cruz said bringing a lawsuit over Biden's action on student debt relief could be difficult.

"As a general matter, just being a taxpayer is not sufficient for the courts to conclude you have standing to challenge an expenditure of funds," he said. "You have to find someone who was harmed by the expenditure of funds."

Harvard University law professor emeritus Laurence Tribe told CNBC that the first challenge to filing a lawsuit against the president's plan is finding an appropriate plaintiff.

This would probably need to be someone who can show that student loan forgiveness has caused them "personal injury."

"Such injury is needed to establish what courts call 'standing,'" Tribe said. "No individual or business or state is demonstrably injured the way private lenders would have been if, for instance, their loans to students had been canceled."

The White House released a 25-page memo last week that argues that canceling student debt is "appropriate" under the Heroes Act of 2003, which gives the president broad power to modify student loan programs. The legislation was passed in the wake of September 11, 2001, and authorizes the executive branch to forgive student loans during times of national emergency. The COVID-19 pandemic was declared a national emergency by the Trump administration in March 2020.

The federal Education Department has said the application for loan forgiveness will be available by October and higher education expert Mark Kantrowitz told CNBC that "borrowers should apply for forgiveness and be cautiously optimistic."

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Politics
The Biden administration is calling out Republicans who are weighing legal action over President Joe Biden's recent decision to forgive the federal student loans of up to 43 million Americans. Accusing the GOP of hypocrisy, White House spokesman Abdullah Hasan said the party ...
joe biden, student loan forgiveness, ted cruz, gop
502
2022-29-02
Friday, 02 September 2022 05:29 PM
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