Republicans are readying lawsuits to block Biden’s student debt plan
Other influential conservatives — including Sen. Ted Cruz (R-Tex.) and allies of the Heritage Foundation, a conservative think tank — are mulling their own options as they ratchet up criticism of Biden’s debt-relief plan, two additional people familiar with the matter said. And a conservative advocacy group founded by a major Trump donor said it would file a lawsuit against the policy.
“The conservative public interest law firms in our network are exploring filing lawsuits against this. They are doing background legal research, trying to find out who might be the most suitable clients for them,” John Malcolm, director of the Meese Center at the Heritage Foundation, said in an interview. “They have to find a client with the standing and the gumption to take on a lawsuit. There are several groups in our network who are exploring that right now.”
All of the sources cautioned that no decisions have been made — and as of Thursday morning, no lawsuits appeared to have been filed. But a legal battle could carry stark financial consequences for millions of student borrowers, who rejoiced last week after Democrats delivered on a long-standing promise to erase some of their debt.
The possible litigation also raises the prospect of a broader, precedent-setting courtroom tussle over the scope of the president’s economic authority. Such a lawsuit could reach the Supreme Court, thrusting it back into the spotlight after it infuriated Democrats by stripping abortion protections and limiting the Environmental Protection Agency’s power to respond to climate change.
Under Biden’s plan, announced last week, the government is set to forgive up to $10,000 in federal college debt — or $20,000 if borrowers also received Pell Grants, which typically go to lower-income students. While the plan is less generous than some in the Democratic Party initially sought, it still marks a major financial benefit for many debtors — some of whom expressed horror that they could lose the help before it even arrives.
“That would be terrible,” said Michael Loomus, 31, who works as a call center supervisor in Ohio, referring to the prospect of the courts blocking Biden’s plan. Loomus has struggled to pay down his $11,400 in student loans since dropping out of the University of Toledo, but most of his debt…
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