The Job Creators Network Foundation (JCNF) Legal Action Fund (LAF) filed suit against the Biden Administration's student debt forgiveness plan in the U.S. District Court for the Northern District of Texas. The loans granted to students had a total value of $420 billion.
JCNF President Elaine Parker asserted that the federal government "overstepped its executive powers" and that Biden's plan "violated" the Administrative Procedure Act:
Our lawsuit intends to block the Biden administration's student loan bailout, which is an unprecedented executive power grab. The administration's action does nothing to address the root cause of unaffordable tuition: greedy and bloated colleges that raise tuition far more than inflation year after year while sitting on $700 billion in endowments.
In the complaint filed, this group of small businesses pointed out that relieving this debt hurts taxpayers, especially those who did not have the opportunity to go to college:
The Biden administration is shifting the burden to taxpayers, including those who didn't go to college or paid their student loans back, and allowing colleges to escape responsibility for their actions creating the student loan crisis.
To which Parker added:
Colleges need to be held accountable for their outrageous tuition prices that fund high executive pay, an army of administrators who provide little-to-no value, and the construction of resort-style amenities. College endowments, not taxpayers, should be responsible for helping students drowning in debt.
What is student debt forgiveness?
One of the educational measures Joe Biden set as a goal after becoming president was student debt forgiveness. Through this plan, each university student will be relieved from repaying loans of up to $20,000 granted by the federal government.
This measure will eliminate debt for about 20 million people and reduce the monthly payment for those who continue to have one by about $250 a month, according to the Department of Education.
Biden's plan will have no effect. In less than ten years, student debt will return to the same levels and the cancellation will have no influence on the newly indebted.
This is not the first claim
A few days ago, the Pacific Legal Foundation, an association of lawyers, called the university debt forgiveness plan "illegal and unconstitutional.” This association filed a temporary restraining order to prevent the initiative from going into effect.
In September, 22 Republican governors condemned the plan as "shifting responsibility from the wealthy to working Americans." They pointed out that the President's move will cost each taxpayer an additional $2,000 ($600 billion in total) amid runaway inflation and called on him to withdraw the plan.
