A federal judge strikes down another conservative lawsuit against Biden's student-debt cancellation — but says a future administration could recollect the forgiven loans
REUTERS/Joshua Roberts
- A Wisconsin conservative group filed a lawsuit against Biden's student-loan forgiveness.
- Two days later, a federal judge dismissed the case and said the group lacks any standing.
- But the judge did speculate whether another administration could reinstate loans forgiven under Biden.
A conservative lawsuit against President Joe Biden's student-loan forgiveness rose and fell in a span of two days.
On Tuesday, the Wisconsin Institute for Law and Liberty (WILL) — a conservative law firm — filed a federal lawsuit on behalf of the Brown County Taxpayers Association challenging Biden's $20,000 student-debt relief plan. The group argued that the broad loan forgiveness has an "improper racial motive" by intentionally helping Black borrowers. They also said it violates the constitutional right of separation of powers by carrying out the relief without Congressional approval.
A federal judge struck their case down on Thursday. In the court filing, the judge wrote that the group lacked any standing on their arguments and dismissed the case. However, he did note that "a substantial question remains as to whether Plaintiff can demonstrate that it will suffer irreparable harm."
"If, as Plaintiff alleges, the executive branch lacks all authority to void student debts in the manner proposed, Defendants' action may be void or voidable," the judge wrote. "If that is so, a future administration may not be bound by such actions and may seek to collect the purportedly forgiven debts."
The judge is referring to the HEROES Act of 2003. Biden's administration says it has the authority to enact one time relief under that Act,which gives the Education Secretary the ability to waive or modify student loan balances in connection with a national emergency, like COVID-19. But WILL — and other conservative groups and lawmakers — have said the debt cancellation is an overreach of that authority.
Since WILL lacks standing, as the judge said, the issue of authority cannot be decided right now, but "those seeking to take advantage of the program, however, may wish to consider this possibility before placing undue reliance on the benefits promised," he wrote.
This is the second major lawsuit a judge has struck down that's pushed back on Biden's debt relief. The first one, filed by an Indiana attorney who argued the relief would result in a higher tax bill, was dismissed because the administration has clarified that borrowers can choose to opt out of the policy. Next week, though, a federal judge is expected to hear oral arguments on a lawsuit filed by six Republican-led states who argued the loan forgiveness will hurt their states' tax revenues, along with operations of Missouri-based student-loan company MOHELA, where the suit was filed.
That case could decide whether Biden's plan will be paused, and the judge already affirmed that no student debt will be canceled before October 17.
For now, the Education Department is telling borrowers to prepare for a student-loan forgiveness application that will become available this month, and it will be "short and simple" and will not require any uploading of documents to verify income.
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