<mediadc-video-embed data-state="{"cms.site.owner":{"_ref":"00000161-3486-d333-a9e9-76c6fbf30000","_type":"00000161-3461-dd66-ab67-fd6b93390000"},"cms.content.publishDate":1664482176261,"cms.content.publishUser":{"_ref":"00000177-1b39-d2c7-af7f-5fbf13ff0004","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"cms.content.updateDate":1664482176261,"cms.content.updateUser":{"_ref":"00000177-1b39-d2c7-af7f-5fbf13ff0004","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"rawHtml":"
var _bp = _bp||[]; _bp.push({ "div": "Brid_64482165", "obj": {"id":"27789","width":"16","height":"9","video":"1106119"} }); ","_id":"00000183-8ade-de66-aba3-ebde68840000","_type":"2f5a8339-a89a-3738-9cd2-3ddf0c8da574"}”>Video EmbedAn Indiana court rejected a request to place a temporary restraining order on President Joe Biden’s plan to forgive millions of dollars in student debt, finding that a plaintiff who sued “cannot be irreparably harmed.”
The decision comes after the Department of Education responded to a lawsuit filed against Biden’s one-time student debt cancellation plan by quietly updating its policy to counter the plaintiff, who claimed he would sustain an unwarranted tax bill.
“Following a change in the student loan debt relief plan at issue … 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,” U.S. District Judge Richard Young wrote in an order on Thursday.
LAWSUITS MOUNT ON BIDEN’S EXPENSIVE STUDENT LOAN FORGIVENESS PLAN
The judge allowed the plaintiff and the law firm who sued on his behalf, Pacific Legal Foundation, until Oct. 10 to amend his previous complaint.
Since Biden announced his plan in August, the Education Department has claimed nearly 8 million federal student loan borrowers are slated to receive automatic loan forgiveness under the president’s plan. However, the agency changed its policy language Wednesday afternoon to allow those millions of borrowers to opt out of the forgiveness plan, a decision that raises questions about the plaintiff’s previous legal arguments.
According to a lawsuit filed by the PLF on Tuesday, Frank Garrison, an employee of the legal group and a resident of Indiana, would qualify to receive $20,000 in debt forgiveness despite already being six years into a 10-year repayment plan, which would see his debt forgiven after a decade without any additional tax expense.
The group claimed Garrison’s tax bill will increase by $1,000 if he receives the automatic forgiveness because he lives in Indiana, one of several states that plans to tax the debt forgiveness.
But in addition to clarifying that roughly 8 million borrowers will be allowed to opt out of the forgiveness plan, the agency filed a notice in the Southern District Court of Indiana on Wednesday saying Garrison has been removed from automatic forgiveness.
“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 notice reads.
A representative with the group told the Washington Examiner, “We are considering the government’s response and will address it and other matters in court,” referring to the Education Department’s amended policy. Additionally, an attorney said Tuesday it would be harder to argue Garrison is still harmed if he is allowed to opt out.
Biden’s plan would forgive up to $10,000 for some federal borrowers making less than $125,000 per year and up to $20,000 for Pell Grant recipients, a plan that can roughly apply to 40 million borrowers. Most people will need to apply for forgiveness when an online application opens up to the public in early October.
Conservative and libertarian groups have been searching for legal standing to bring a lawsuit against Biden’s plan since he announced it in August, arguing it would be unfair to those who did not take out loans for college and that it would be a massive taxpayer expense with little impact on the overall debt crisis.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
The monumental task of forgiving the debt of millions of student borrowers is estimated to cost as much as $400 billion, according to an estimate posted Monday by the Congressional Budget Office.
On Thursday, six Republican-led states filed a lawsuit in Missouri federal court accusing the administration of overstepping its executive powers by relying on the 2003 HEROES Act and the COVID-19 pandemic as justification to bring forth the forgiveness plan.
