Judge Revives Biden’s Student Loan Forgiveness Plan?

Gage Skidmore from Peoria, AZ, United States of America, CC BY-SA 2.0 , via Wikimedia Commons

(TruthAndLiberty.com) – On Monday, Thomas Ludington, the U.S. District Judge of the Eastern District of Michigan dismissed the lawsuit filed on behalf of a couple conservative groups that were looking to block the federal administration’s student loan plan that would cancel over $39 billion for over 800,000 borrowers.

The lawsuit was dismissed without prejudice by the judge who pointed out that the groups lacked the necessary standing to back their complaints as they had not been sufficiently injured.

The 18-page order further pointed out that even if it was assumed that sufficient injury had taken place, the plaintiffs had not shown an adequate link between the Defendant’s action and the injury caused. The complaint had originally been filed by the New Civil Liberties Alliance on behalf of the Cato Institute and the Mackinac Center for Public Policy. In it, they had claimed that the administration was overstepping with their recently announced forgiveness plan.

A few weeks before the lawsuit was filed the Supreme Court had struck down the Biden student loan forgiveness plan. That plan would have forgiven $10,000 in federal student loans for eligible Americans.

The New Civil Liberties Alliance litigation counsel Sheng Li pointed out that the district court simply stated that the two organizations were the wrong parties to file such a case, and they had not ruled on the case’s merits. However, Li added that they did not agree with the conclusion of the court which is why they were looking at what other available legal options they had with their clients.

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