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Libertarian group asks U.S. Supreme Court to hear challenge to student debt forgiveness program

Supreme Court
Posted at 8:06 AM, Nov 02, 2022
and last updated 2022-11-02 08:18:09-04

INDIANAPOLIS — Two Indiana men are calling on the U.S. Supreme Court to hear their lawsuit about the president's student loan relief program.

The lawsuit, filed by the California Libertarian group Pacific Legal Foundation, argues the student loan forgiveness program is unlawful because the men say it'll require them to pay more in state taxes.

The plaintiffs are Frank Garrison, an attorney for the legal advocacy group, and Noel Johnson, both of whom are eligible for automatic debt cancellation. Since they live in Indiana, their canceled debt would be subject to state taxes.

Indiana is one of seven states that plans to tax any debt forgiven in Biden's plan.

Supreme Court Justice Amy Coney Barrett will examine the case. She previously dismissed a separate legal challenge out of Wisconsin to cancel the student loan relief program.

A federal judge twice dismissed Pacific Legal Foundation's challenges to the student debt forgiveness program.

The federal student aid website shows approximately 8 million borrowers are eligible for student loan relief. But, those borrowers can choose to opt out of the program.