This one is not.”īy the end of about three and a half hours of arguments in two separate cases, the court’s conservative majority seemed likely to dash the hopes of the 26 million borrowers who have already applied for loan relief, including millions who have received approval. “Congress could not have made this much more clear,” Justice Elena Kagan said, adding: “We deal with congressional statutes every day that are really confusing. The court’s three liberal members said Congress had already acted, by passing a law in 2003 that authorized the secretary of education to address emergencies. PLF has filed a temporary restraining order to prevent the loan cancellation from going into effect.“I think most casual observers would say,” the chief justice said, that “if you’re going to give up that much amount of money, if you’re going to affect the obligations of that many Americans on a subject that’s of great controversy, they would think that’s something for Congress to act on.” District Court for the Southern District of Indiana. PLF has won five separation of powers cases at the U.S. The challenged program will stick him with a new state tax bill which he would not have under his existing PSLF program.įor decades, Pacific Legal Foundation has fought for the constitutional separation of powers, the main structural protections against abuses of power that undermine freedom. As a part of an existing, congressionally authorized Public Service Loan Forgiveness (PSLF) program, he will receive debt forgiveness after making 10 years of payments on his loans. Plaintiff Frank Garrison is a public interest attorney - now at Pacific Legal Foundation - who believes the rule of law and separation of powers are bulwarks for liberty and against centralized government power. “Loan cancellation will make Americans more divided, as those who paid their loans-or never went to college-will have good reason to think that we no longer have a government of, by, and for the people.” It will only lead to more calls for government intervention in education at taxpayers’ expense,” said Steve Simpson, senior attorney at Pacific Legal Foundation. “Cancelling student debt is unjust to those who have paid their loans or never took any. Not since President Trump imposed a nationwide eviction moratorium before the 2020 elections has a president abused his power so profoundly. That is one of the predictable effects of the president usurping Congress’ power to make law. Whatever the motives of the president for transferring massive amounts of student debt to taxpayers in a rushed, haphazard manner, it certainly seems like an election year ploy. The Department of Education’s justification relies on an inapplicable, 20-year-old law: The HEROES Act, which was intended as aid to veterans and their families, allows government to modify student loans during times of war or national emergency. In August 2022, President Biden announced his plan to cancel up to $20,000 in student loan debt per person for more than 40 million Americans. “It’s flagrantly illegal for the executive branch to create a $500 billion program by press release, and without statutory authority or even the basic notice and comment procedure for new regulations.” “Congress did not authorize the executive branch to unilaterally cancel student debt,” said Caleb Kruckenberg, an attorney at Pacific Legal Foundation. Department of Education to block its illegal move to cancel more than $500 billion in student loan debt. Indianapolis September 27, 2022: Today, Pacific Legal Foundation filed suit against the U.S.
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