Wisconsin group is suing BLOCK Biden’s student loan forgiveness for “violating federal law by narrowing the racial wealth gap and helping black borrowers.”
- The Wisconsin Institute for Law and Liberty filed a lawsuit Tuesday
- It accused the Biden administration of going too far with its student debt plan
- But it also introduced the issue of race into its arguments
- It said it had violated the constitution by introducing “an inappropriate racial motive”.
A Wisconsin conservative group is questioning Joe Biden’s loan forgiveness program, saying it is unconstitutional by intentionally favoring black borrowers.
The Wisconsin Institute for Law and Liberty filed a lawsuit Tuesday on behalf of the Brown County Taxpayers Association.
It follows similar paths as other challenges by accusing the Biden administration of executive overreach.
But it also notes that officials have promoted the plan as a way to narrow the racial wealth gap and help people of color.
“By creating and implementing a federal program with an improper racial motive, the defendants violated the constitutional guarantee of equal protection of the laws of the law, which, among other things, prohibits federal spending on the basis of race,” the complaint reads.
Biden announced his plan to cancel federal student debt in August. It includes forgiveness of up to $10,000 for borrowers earning less than $125,000 or up to $20,000 for those who have Pell Grant loans, which are typically given to people in financial need .
The Department of Education estimates it will cost $305 billion over the next decade as less money is paid to the government.
President Joe Biden’s student loan forgiveness plan faces legal challenges across the country. The latest is led by Rick Esenberg (right), president and general counsel of the Wisconsin Institute for Law and Liberty, which filed papers Tuesday
“By creating and implementing a federal program with an improper racial motive, the defendants violated the constitutional guarantee of equal protection of the laws of the law, which, among other things, prohibits federal spending on the basis of race,” the complaint reads
The government has been criticized for effectively giving money to a section of society that needed it the least – people with college degrees.
But the White House said the impact of debt relief would reduce the racial wealth gap.
“By targeting relief to borrowers with the highest economic needs, government actions are likely to help narrow the racial wealth gap,” said a fact sheet promoting the policy.
“Black students are more likely to have to borrow for school and are more likely to take out larger loans.”
This was taken up by Rick Esenberg, president and general counsel of the Wisconsin Institute for Law and Liberty, who said it violated the constitutional guarantee of equal protection.
“The White House has indicated that one reason is that they believe certain racial groups would benefit disproportionately,” he told the Washington Post.
“The racial motivation supports these taxpayers standing up to the challenge [the policy] and informs of another constitutional difficulty of the program.’
The plan allows millions of borrowers to eliminate $10,000 in student loan debt. Pell grantees may receive $20,000 in relief
The bipartisan Congressional Budget Office says Biden’s plan will cost America $400 billion over the next decade and the recent moratorium will add $20 billion to borrowing debt
At least seven states have initiated legal action, mainly questioning whether Biden has the authority to act without Congress on the matter.
The Biden administration has cited a 9/11-era law, the HEROES ACT, as the basis for debt relief, saying it allows loans to be written off in national emergencies.
Last week, Arizona’s Republican Attorney General, Mark Brnovich, said it didn’t stand up to legal scrutiny.
“The President is attempting to expand the HEROES Act to assert authority over all borrowers in the country, citing the COVID-19 pandemic as a national emergency and the entire United States as a disaster area,” he said.
“The HEROES Act also requires that any action by the Department of Education to “change or repeal” credit requirements must ensure that borrowers are not financially disadvantaged in the absence of a “national emergency.”
“However, several federal loan borrowers have not suffered in terms of their credit.”