A conservative legal group is suing the Biden administration to block what it says is the president’s illegal and unconstitutional plan to cancel hundreds of billions of dollars in student loan debt.
Pacific Legal Foundation on Tuesday asked a federal court in Indiana to stop the Department of Education from forgiving $500 billion of student debt beginning in October. The group says President Joe Biden is abusing a 2003 law meant to forgive student loans for veterans or service members in times of war or "national emergency." The Biden administration claims the coronavirus pandemic constitutes a national emergency.
The lawsuit is the first challenge to Biden’s plan to cancel up to $20,000 of loans per student, which is poised to cost up to $1 trillion over the next decade. Former Obama economic adviser Jason Furman has said the cancellation will be like "gasoline on the inflationary fire that is already burning."
The Department of Education did not respond to a request for comment.