Student loans

Student loan document: New lawsuit says Biden failed to follow administrative procedures

FIRST ON FOX – Conservative group Job Creators Network filed a lawsuit on Monday challenging President Biden’s student loan, which would eliminate $10,000-20,000 of debt for many borrowers at a cost to the taxpayer of $500 billion or more. .

The lawsuit, filed in the U.S. District Court for the Northern District of Texas, argues that the plaintiffs were denied due process under the Administrative Procedure Act (APA) to object to the move for a period of comments.

“The Department of Education has flagrantly violated the APA notice and comment requirements,” the complaint states. “Behind closed doors, the Department has enacted a new debt forgiveness program that will affect tens of millions of Americans and cost hundreds of billions of dollars.”

President Biden announced in August that his administration would cancel up to $10,000 or $20,000 in federal student loans for many borrowers.
(AP Photo/Damian Dovarganes)

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Failure to comply with the APA has often been used by opponents of former President Trump’s administration to slow down or block the actions of Trump’s executive branch.

However, the Biden administration says the president has broad emergency power to cancel student loans as he sees fit under a 2003 law called the HEROES Act.

This law has been invoked repeatedly by Biden and Trump to suspend student loan payments in recent years, citing the COVID-19 pandemic. However, many observers, including left-wing supporters Brennan Center for Justice, say it’s a dubious argument and potentially a “slippery slope” to use this power to write off hundreds of billions in student loans.

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The difficulty for those challenging the law, however, has been the need to prove their “standing” in federal court – to prove that they were harmed by the ruling and therefore have grounds to challenge it. Job Creators Network CEO Elaine Parker told Fox News Digital that the alleged lack of APA process followed gives that to plaintiffs in the lawsuit.

“Complainants were denied notice and comment, which the APA requires. It’s pretty straightforward,” Parker said. “Everyone in this country is affected by this program and therefore everyone should be allowed to give their views to their government, and the complainants here have been denied this process.”

The Biden administration did not immediately respond to a request for comment.

The suit was filed in the Fifth Circuit, where the appeals court is dominated by a 12-4 majority of GOP-appointed justices. This means that if the case goes to appeal, it might have a better chance of going to the Supreme Court.

Other student loan lawsuits were filed in the Seventh, Eighth and Ninth Circuits.

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One of the criteria the Supreme Court looks for when taking cases is the distribution of decisions among the circuit appeals courts. If appeals courts rule differently on lawsuits, that could help bring the issues before the judges.

“This is the first case filed in the Fifth Circuit. We think it’s a good place to be,” Parker said. “The plaintiffs are there, obviously, and we’re happy with the merits of this case.”