Student Loan Forgiveness: WI lawsuit seeking to block relief program

 

MADISON Wis. (CBS 58) -- A conservative law firm in Wisconsin is suing to block President Joe Biden's plan to wipe out thousands of dollars in student loan debt.

The Wisconsin Institute for Law & Liberty (WILL) filed the lawsuit on behalf of the Brown County Taxpayers Association against Biden and the U.S. Education Department arguing the administration has no authority to "unilaterally" implement the program without approval from Congress.

"There has to be clear congressional authorization," said Rick Essenberg, president of WILL. "Nobody thinks that exists here and very few people think what the administration has done is legal."

White House officials and the Department of Education for weeks have said the administration has the ability to forgive student loan debt during the pandemic through the HEROES Act. The federal law was enacted in wake of the 9/11 attacks which allows the education secretary to have broad authority in halting loan programs when there's a war, national emergency or other military operations.

Essenberg argues the Biden administration announced the debt forgiveness program after declaring the pandemic was over and believes it has no standing without congressional authorization. WILL's complaint also states the debt relief program is motivated to "enhance racial equity" and implemented to help "Black students."

A spokesperson for the White House did not respond to request for comment, however, White House press secretary Karine Jean-Pierre spoke about the lawsuits targeting the forgiveness plan on Tuesday.

"It’s a shame that you have Republicans out there — Republican groups, Republican states — that are trying to stop Americans from getting a little bit of a breathing room, a little bit of a break," Jean-Pierre said during a White House briefing. "And, let’s not forget. The pause is going to lift in December, so people are going to be paying back their loans."

The lawsuit comes as borrowers, as soon as this month, can start applying for loan forgiveness. WILL is asking the court to prevent Americans from filling out those applications.

Biden's sweeping plan would provide up to $20,000 in debt relief to Pell Grant recipients and up to $10,000 in debt relief to non-Pell Grant recipients. Borrowers would also be eligible for relief if their income is less than $125,000 or $250,000 per household.

Estimates show 40 million borrowers would be eligible, including more than 685,000 Wisconsinites.

Relieving student debt has received mixed reviews. While it's popular on college campuses, others argue it isn't fair to individuals who already paid off their debt. Biden's plan also comes with a major price tag costing over $30 billion each year over the next decade, according to estimates from the U.S. Department of Education.