It’s unclear whether a lawsuit could be heard on President Biden's administration waiving student debt. But if it does head to court, the plan's legal rationale may not hold up.
, who said it is poorly timed because it will increase inflationary pressures amid the country's highest inflation in 40 years.for him doing so on his own, without congressional approval.that the president has to work with Congress to enact a debt forgiveness plan is Biden’s close legislative ally, House Speaker Nancy Pelosi, D-Calif.When Biden announced his plan, he didn’t issue an executive order.
The HEROES Act, the department wrote, "grants the Secretary authority that could be used to effectuate a program of targeted loan cancellation directed at addressing the financial harms of the COVID-19 pandemic." This authority, the legal memo says, can be used to "address the financial harms of such a war, other military operation, or emergency," such as the COVID-19 pandemic.
By taking this legal approach, the Education Department "must demonstrate a plausible connection between the relief offered and the financial burdens created by the pandemic," said Ryan D. Doerfler, a Harvard law professor.
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