Supreme Court Justice Barrett rejects a second challenge to President Biden’s student loan forgiveness plan, keeping the court out of the fight over the program that’s raging in the lower courts.
The latest case was brought by the Pacific Legal Foundation, a conservative legal group representing two Indiana-based lawyers Frank Garrison and Noel Johnson, who say that the plan was not authorized by Congress and is an abuse of presidential power.
A major obstacle facing challengers is to show they have legal standing to sue by illustrating how they are harmed by the program. The challengers argue they will be worse off because of the cancellation of student debt. Garrison and Johnson say they could have their loans relieved through the Public Service Loan Forgiveness program, which cancels debt for people who are employed by a federal, state, local or tribal government or a not-for-profit organization.
After the initial lawsuit was filed, the Education Department said that people who do not wish to have their loans forgiven could opt out, which raises additional questions about whether Garrison and Johnson have legal standing. The challengers’ lawyers and other critics of the program say the Biden administration is guilty of cynically amending the terms of the plan in order to prevent courts from reaching the legal merits.for those earning less than $125,000 a year and couples who file taxes jointly and earn less than $250,000 annually. Pell Grant recipients, who comprise the majority of borrowers, would be eligible for an additional $10,000 in debt relief.
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