A small-business advocacy group has filed a new lawsuit seeking to block the Biden administration's efforts to forgive student loan debt for tens of millions of Americans — the latest legal challenge to the program.
, calling the plan an illegal overreach that would increase state tax burdens for some Americans who get their debt forgiven.a local taxpayers group, the Brown County Taxpayers Association, that sought to block the program, ruling that the group didn’t have standing to bring the lawsuit. The group had argued that Biden’s order unlawfully circumvented Congress’ power over spending and said the plan was discriminatory because it sought to give particular help to borrowers of color.
The suit includes two plaintiffs: one who does not qualify for debt forgiveness because the plan excludes commercially held loans that are not in default, and one who did not receive a Pell grant and is therefore entitled to less debt forgiveness under the plan. It also alleges the department “made numerous arbitrary decisions about the Program, including which individuals will receive debt forgiveness, how much of their debt will be forgiven, and which types of debt will qualify for the Program.”
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