Lawsuit To Stop Biden's Student Loan Forgiveness

[Voluntarist]

'Flagrantly Illegal': Law Firm Files Lawsuit To Stop Biden's Student Loan Forgiveness

This is the first serious challenge to Biden's student loan forgiveness plan, which he announced last month. The lawsuit's plaintiff is Frank Garrison, who's also an attorney at PLF. Garrison borrowed federal student loans to pay for law school, but according to him, Biden's debt forgiveness plan will actually subject him to a financial penalty in the form of a state tax. This gives him standing to sue the U.S. Education Department, his lawsuit argues.

 

[Brian4Liberty]

https://twitter.com/USAB4L/status/1574801323651993601

 

[jkr]

Excuse me for noticing but I'm pretty sure it's fragrantly illegal to create a form of debt that cannot be discharged in bankruptcy.

and it's the only kind

Looks like slavery to me...feels like it too

 

[Sonny Tufts]

Excuse me for noticing but I'm pretty sure it's fragrantly illegal to create a form of debt that cannot be discharged in bankruptcy.

and it's the only kind

Looks like slavery to me...feels like it too

It's not the only kind. There's a laundry list of them in 11 USC §523, including taxes; debts for money obtained by fraud or theft; domestic support obligations; and certain intentional torts. See https://www.law.cornell.edu/uscode/text/11/523

 

[Invisible Man]

I'm pretty sure it's fragrantly illegal to create a form of debt that cannot be discharged in bankruptcy.

Source?

 

[jkr]

It's not the only kind. There's a laundry list of them in 11 USC §523, including taxes; debts for money obtained by fraud or theft; domestic support obligations; and certain intentional torts. See https://www.law.cornell.edu/uscode/text/11/523

thanks!
at least im not alone...i keep this job a year and dat shitz is byby...if not im 50 with 2 kids under 10...

 

[Anti Globalist]

Or the Supreme Court could step in and say it's unconstitutional for Biden to do this but that's just a pipe dream.

 

[Brian4Liberty]

Or the Supreme Court could step in and say it's unconstitutional for Biden to do this but that's just a pipe dream.

That's probably the goal of this lawsuit.

 

[GlennwaldSnowdenAssanged]

A paraplegic that had paid off his debt wanted to sue but was told he has no standing.

 

[oyarde]

Source?

I would guess any debts owed to any form of govt in america are never discharged. Child support , speeding tickets , state taxes , fed taxes etc but I would also think anyone in states where the amount forgiven will be taxed as income could have standing to sue.

 

[Voluntarist]

Well, that didn't last long:

Big lawsuit against Biden's student debt cancellation gets shot down in less than a week

United States District Court Judge Richard L. Young on Thursday declined to block the Biden administration's student debt forgiveness plan.

The lawsuit was filed on Tuesday by Frank Garrison, an Indiana attorney who works for the Pacific Legal Foundation. Garrison said he did not want $20,000 worth of forgiven debt because he would have to pay more than $1,000 in Indiana state taxes.

One day later, on Wednesday, the U.S. Department of Education responded, saying Garrison would not suffer irreparable harm.

"Upon receiving this lawsuit and reviewing Plaintiff’s filings, the Department has already taken steps to effectuate Plaintiff’s clearly stated desire to opt out of the program and not receive $20,000 in automatic cancellation of his federal student loan debt, and so notified Plaintiff’s counsel today," the Department of Education responded.

On Thursday, Judge Young agreed in an order denying a temporary restraining order, writing, "The court, in view of the fact the Department of Education exempted Plaintiff from receiving debt relief, finds Plaintiff cannot be irreparably harmed as is required for preliminary relief."

...

"In other words, Garrison’s wish has been granted: The government will not cancel $20,000 of his student debt," Stern wrote. "With these two moves, the Biden administration has blown up PLF’s theory of standing. Not only has the government added an opt out to ensure that nobody is compelled into debt relief, it has already ensured that Garrison’s debt specifically will stay on the books. His injury, already dubious, has disappeared."

It seems that a plaintiff will have to prove that someone else receiving debt relief will harm them. But wouldn't that be any taxpayer?

 

[Voluntarist]

It now appears that Missouri, Arkansas, Iowa, Kansas, Nebraska and South Carolina have filed a joint complaint

Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina asked a federal judge on Thursday to immediately block the program before the administration starts the process of canceling loan balances in the coming weeks.

“In addition to being economically unwise and downright unfair, the Biden Administration’s Mass Debt Cancellation is yet another example in a long line of unlawful regulatory actions,” the six states said in a lawsuit filed in Missouri federal court.

President Joe Biden’s plan is based on a 2003 federal law authorizing student-debt forgiveness for individuals serving in the military during a war or living somewhere designated as a “disaster area” by a governmental entity, according to the complaint.

The states argue the White House plan isn’t “remotely tailored to address the effects of the pandemic on federal student loan borrowers,” as required by the law. They also cited Biden’s claim in a recent “60 Minutes” interview that “the pandemic is over.”

 

[Brian4Liberty]

Well, that didn't last long:

Big lawsuit against Biden's student debt cancellation gets shot down in less than a week


It seems that a plaintiff will have to prove that someone else receiving debt relief will harm them. But wouldn't that be any taxpayer?

When the victim is the average taxpayer or US citizen, there is no victim. No one has standing. It’s the ultimate crime, committed by government criminals.

 

[acptulsa]

 

[osan]

'Flagrantly Illegal': Law Firm Files Lawsuit To Stop Biden's Student Loan Forgiveness

I hope they lose and Biden goes ahead. Why? Glad you asked. Because this will be yet another anecdotal pixel in the grand image of Theire evil. The average man has shown his utter refusal to face truth, at least thus far. It appears to me that the only hope lies in driving conditions to ever more dire states. Where is "the line"? We're screwed in any event, so why prolong the agony? Let this bitch come apart... or find that line where people finally realize they hae nothing to lose by stopping their lives and facing the tyrant, cleavers in hand and ready to do whatever it takes to defend their interests from Theire predations.

War isn't coming. We are smack in the middle of it, and have been for decades. End games are on the near horizon, or so it seems to me. I may be mistaken, but I find it very difficult to accept that this enormous confluence of global calamities could be even remotely likely, actuarially speaking. Seems to me that the human race is going to go meekly to its doom at the behest of the globalist beasts. Much as I try, I find it difficult to grasp why we're doing it.

 

[TheTexan]

Well, that didn't last long:

Big lawsuit against Biden's student debt cancellation gets shot down in less than a week


It seems that a plaintiff will have to prove that someone else receiving debt relief will harm them. But wouldn't that be any taxpayer?

That's a slippery slope though, same argument could be made for welfare in general, and then you'd quickly get into "tax is theft" territory which obviously both of us know is just ridiculous (obviously)

 

[Voluntarist]

The Redheaded libertarian:
JUST IN: In a remarkable reversal that will affect the fortunes of millions of student loan borrowers, the U.S. Department of Education quietly changed its rules on who is eligible for President Biden's comprehensive student debt relief program. https://n.pr/3BRRXgN

NPR:
JUST IN: In a remarkable reversal that will affect the fortunes of millions of student loan borrowers, the U.S. Department of Education quietly changed its rules on who is eligible for President Biden's comprehensive student debt relief program.

Details on that from Politico:

The Biden administration is scaling back its debt relief program for millions of Americans over concerns about legal challenges from the student loan industry as well as a new lawsuit from Republican-led states.

In a reversal, the Education Department said on Thursday it would no longer allow borrowers who have federal student loans that are owned by private entities to qualify for the relief program. The administration had previously said those borrowers would have a path to receive up to $10,000 or $20,000 of loan forgiveness.
...
The student loans that are guaranteed by the federal government but held by private entities account for a relatively small, and shrinking, subset of all outstanding federal student debt. They comprise just several million of the roughly 45 million Americans with federal student loans.

But there are significant business interests that depend on the federally guaranteed loan program — a wide range of private lenders, banks, guaranty agencies, loan servicers and investors. That industry is widely seen, both inside and outside the administration, as presenting the greatest legal risk to the debt relief program.

Many of those companies face economic losses when they lose borrowers who convert their federally guaranteed loans into new loans that are made directly by the Education Department through a process known as consolidation.

Administration officials said when they announced the debt relief program in August that borrowers with federally guaranteed loans should consolidate their loans in order to receive loan forgiveness.

The Education Department said Thursday that borrowers who already took those steps to receive loan forgiveness would still receive it. The agency said it would still provide debt relief to borrowers “who have applied to consolidate into the Direct Loan program prior to Sept. 29, 2022.” But the department said that path is no longer available to borrowers after the new guidance.
...
The privately held federal student loans featured prominently in the new lawsuit filed by GOP attorneys general on Thursday.

Biden and team are nibbling away at it in order to keep it out of court - probably for fear that the whole thing will be thrown out if any part of it has someone with legitimate standing to challenge it in court.

 

[RonWrightor]

They just are not going to talk about the fact that predatory "colleges" targeted already miseducated youth, and allowed them to mortgage their lives for a degree in gender displays among Siamang Monkeys in the fourth century?

I say: Disgorgement. The universities that participated in this fraud should be required to disgorge.

 

[Voluntarist]

They keep trying:

Koch-backed think tank is suing Biden's student-loan forgiveness, arguing it undermines their hiring efforts by relieving debt for public servants

On Tuesday, the Cato Institute — a libertarian think tank cofounded by Charles Koch — filed a federal lawsuitt in Kansas against Biden's up to $20,000 in debt relief announced at the end of August. Represented by the New Civil Liberties Alliance, Cato argued that this broad relief undermines hiring benefits brought on by the Public Service Loan Forgiveness (PSLF) program, which is intended to cancel student debt for government and nonprofit workers after ten years of qualifying payments.

As a nonprofit organization, Cato's case claims that canceling student debt broadly for federal borrowers would remove the appeal of PSLF and stunt recruiting efforts.

"The Constitution does not give the federal government the power to fund, guarantee, or cancel student loans. But if it's going to wield illegitimate power, it should at least do so without additional, maybe even more fundamental, violence to the rule of law," Cato President Peter Goettler said in a statement. "Allowing the executive branch to undermine the explicit policy choices of the legislative branch, as President Biden's debt-cancellation scheme plainly does, is completely beyond the pale."

Cato's press release also said that Biden's relief is an overreach of the HEROES Act, which gives the Education Secretary the ability to waive or modify student-loan balances in connection with a national emergency, like COVID-19. It's an argument other conservative groups and Republican lawmakers have used when pushing back on broad student-loan forgiveness.

 

[Voluntarist]

Justice Amy Coney Barrett denies emergency application to block the program that had been filed by a Wisconsin taxpayers group Wednesday.

Supreme Court rejects request to block Biden student loan debt forgiveness program

The Supreme Court on Thursday rejected a request to block the Biden administration’s student loan debt relief program.

Justice Amy Coney Barrett denied the emergency application to block the program that had been filed by a Wisconsin taxpayers’ group Wednesday.
...
The challenge to the plan came from the Brown County Taxpayers Association in Wisconsin, which had filed a federal lawsuit in that state as part of that effort.

Earlier this month, a U.S. District Court judge dismissed the suit, saying the group lacked legal standing to stall the plan pending the outcome of the case.

The group then appealed that ruling to the 7th Circuit. In its request Wednesday to Barrett, the group asked that she or the entire Supreme Court suspend implementation of the debt relief program pending the outcome of its appeal.