Judge dismisses Wisconsin student debt relief lawsuit, says loans can be reinstated

  • A conservative group in Wisconsin has filed a lawsuit against President Joe Biden’s student loan forgiveness.
  • Two days later, a federal judge dismissed the case and declared the group lacked standing.
  • But he said there was a chance another administration could reinstate canceled loans under Biden.

A conservative lawsuit against President Joe Biden’s student loan forgiveness has gone up and down in the space of two days.

On Tuesday, the Wisconsin Institute for Law and Liberty — a conservative law firm — filed a federal lawsuit on behalf of the Brown County Taxpayers Association challenging Biden’s $20,000 student debt relief plan. The group argued that the broad loan forgiveness had an “inappropriate racial motive” in intentionally helping black borrowers. He added that he violated the constitutional right of separation of powers by making the repair without congressional approval.

A federal judge dismissed the case Thursday. In a court filing, the judge wrote that the group lacked standing to defend its case and dismissed the case. But he said: ‘A substantial question remains as to whether the plaintiff can demonstrate that he will suffer irreparable harm.’

“If, as plaintiff contends, the executive branch lacks the power to cancel student debts in the manner proposed, defendants’ action may be void or voidable,” the judge wrote. “If so, a future administration may not be bound by such actions and may seek to collect allegedly canceled debts.”

The judge was referring to the HEROES Act of 2003. The Biden administration says it has the power to pass a one-time measure under that law, which gives the education secretary the power to waive or modify student loan balances in connection with a national emergency, such as COVID-19. But the Wisconsin Institute for Law and Liberty — and other conservative groups and lawmakers — said debt cancellation was an excess of that authority.

Since the organization has no statute, the question of authority cannot be decided, the judge said, but “those seeking to profit from the program, however, may wish to consider the possibility before proceeding. relying unduly on promised benefits”.

This is the second major lawsuit a judge has overturned that pushes back Biden’s debt relief. The first, filed by an Indiana attorney who argued the relief would result in a higher tax bill, was rejected because the administration clarified that borrowers could opt out of the policy.

Next week, a federal judge is expected to hear oral arguments in a lawsuit brought by six Republican-led states that claim loan forgiveness will hurt their state’s tax revenue, as well as the operations of student loan company MOHELA in Missouri, where the complaint was filed.

This case could decide whether Biden’s plan will be put on hold, and the judge has already said no student debt will be forgiven until Oct. 17.

For now, the Department of Education is telling borrowers to prepare for a student loan forgiveness application which will be available this month and will be “short and simple” and will not require any document uploads to complete. check income.

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