Monday, the Legal Action Fund of the Job Creators Network Foundation sued the Biden administration over its plan to wipe out $10,000 in school debt for millions of people.
The conservative advocacy group says that the rule breaks the Administrative Procedure Act's notice-and-comment requirements. Other people have also sued over the student debt cancellation plan, which lets Pell Grant holders get out of $20,000 in loans.
In a statement to The Daily Wire, Elaine Parker, president of the Job Creators Network Foundation, said, "The administration's action does nothing to address the root cause of unaffordable tuition, which is greedy and fat colleges that raise tuition far more than inflation every year while sitting on $700 billion in endowments." "Colleges need to be held accountable for their high tuition fees, which pay for high CEO salaries, army of administrator administrator who don't do much, and resort-style amenities."
According to the complaint, the Administrative Procedure Act of 1946 makes sure that "affected parties can participate in and have an influence on agency decision making early on, when the agency is more likely to consider alternative views." Lawyers for plaintiffs Myra Brown and Alexander Taylor, who didn't qualify for full debt cancellation and couldn't talk to the Department of Education, said the policy is meant to help Democratic politicians in the upcoming midterm elections.
By putting the burden on taxpayers, including those who didn't go to college or pay back their loans, institutions avoid taking responsibility for the student loan crisis. “They are given carte blanche to continue their ridiculous pricing. Bailing out this debt only kicks this problem down the road.”
In addition to giving each borrower $10,000 back, the White House would freeze federal student loan payments until January 2023 and limit payments to 5% of a borrower's monthly income. The Congressional Budget Office says that canceling the loan could cost $400 billion, and stopping the payments could add another $20 billion.
In a petition, several state attorneys general say that the cancellation of student loans goes against the recent Supreme Court ruling in West Virginia v. EPA, which says that federal agencies can't claim "highly consequential power beyond what Congress could be understood to have granted."
The national debt of the United States has gone over $31 trillion for the first time in history. This means that each person owes almost $93,000 and each taxpayer almost $247,000. Republican and Democratic politicians have watched budget deficits grow, but the Biden legislative plan will add more than $4.8 trillion in new deficit spending between 2021 and 2031.
The group said, "This is on top of the trillions we planned to borrow before Biden assumed office." "Excess borrowing will lead to ongoing inflationary pressures, raise the national debt to a new record by 2030, and quadruple federal interest payments over the next decade, or sooner if interest rates rise faster or more than expected."
The preceding is a summary of an article that originally appeared on DAILY WIRE.