INDIANAPOLIS — Since President Joe Biden's August announcement of student loan forgiveness, legal experts have known there would be some sort of challenge to the plan. However, finding someone who could say the forgiveness would negatively impact stumped some people. That's no longer the case.
Pacific Legal Foundation, a Libertarian public interest law firm, is representing Frank Garrison in a lawsuit against the U.S. Department of Education and Secretary Miguel Cardona. The lawsuit lays out why Garrison would be harmed.
RELATED: Garrison v U.S. Department of Education court documents
Garrison, who works for Pacific Legal Foundation as an attorney, is on track to have his student loans forgiven, tax free, through the Public Service Loan Forgiveness program. He's on year 6 of monthly payments through the 10-year-plan. After 10 years, the remainder of his student loan debt would be forgiven tax-free. However, Biden's plan would automatically cancel $20,000 Garrison's debt. Indiana is one of seven states that plans to tax any debt forgiven in Biden's plan, so Garrison would owe more than $1,000 in state and local taxes.
RELATED: Pacific Legal Foundation's release on their lawsuit
Michael Poon, a lawyer on the case, says besides the tax liability it would create for people, there's also another big problem.
"This entire program is illegal," Poon said. "The president is ignoring law that says when the Federal Government makes loans to student borrowers, those loans have to be paid back unless Congress makes an exception like the Public Service Loan Forgiveness program."
As of this article being published, the Biden Administration has not commented on this suit, but has pushed back on claims the debt forgiveness is illegal. Education Secretary Miguel Cardona says the "Heroes act of 2003" allows him to cancel debt for people who faced hardship during the pandemic.
RELATED: Department of Education explains why they have legal authority to cancel student loans
An estimated 8 million people won't have to apply for student loan forgiveness because they're on Income-Driven-Repayment plans. The government knows how much they make and if they'd qualify. Garrison is one of those people which is why his legal team thinks he has a case.
-
Thanksgiving meals still available to those in need
Indiana's Family and Social Services Administration warned Hoosiers that SNAP benefits would not be paid in November unless the government reopens.
Early voting underway in Avon Schools referendum
Early voting is underway in Avon’s special school referendum, and voters consider renewing an eight-year operating tax to maintain funding for teachers and classrooms.
"I think we will get the votes.": Lt. Governor on redistricting in Indiana
Both Governor Mike Braun and Lieutenant Governor Micah Beckwith said they believe the Indiana Senate will have enough votes for redistricting when lawmakers return to the Statehouse Monday.
How to have a healthy Halloween without taking away the fun
Halloween often centers on indulgence, with candy taking center stage. But parents can keep the fun and limit excess sugar without turning the holiday into a battle.
