Delays, lawsuits, and fiscal concerns hobble President JoeBiden's student loan relief plan
The move was widely seen as a way to energize young voters and was announced less than three months before the midterm elections, but now faces the prospect of becoming another court loss for the Biden administration.Biden announced the debt forgiveness program on Aug. 24. It transfers up to $10,000 in student loans for those who make less than $125,000 a year or households making less than $250,000. Pell Grant recipients will be eligible for up to $20,000 in forgiveness.
In the meantime, at least a half-dozen lawsuits have emerged challenging the program's legality. Those filing suit argue that only Congress has the power to set monetary policy, that the pandemic no longer qualifies as a national emergency giving the president expanded powers, and that the program also violates the Administrative Procedure Act, which lays out the method federal agencies should follow to ensure the executive branch’s policies are well reasoned and explained.
“This latest lawsuit is a good example of how far opponents of this program are going to try to file a lawsuit,” she said. “There are two student loan borrowers, and my heart goes out to them and their circumstances. But the remedy doesn’t match. What these guys are asking for would be more cancellation, not less.”
The Committee for a Responsible Federal Budget holds that the program could cost up to $650 billion, while the Penn-Wharton Budget Model says it could exceed $1 trillion with all costs considered. A related question is how the"forgiveness," which involves transferring the debt to taxpayers, will boost the national deficit and potentially fuel inflation.
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