A conservative group in Wisconsin is suing the Biden administration, claiming that their student loan cancellation program intentionally helps close the wealth gap and unfairly benefits Black Americans.
On Tuesday, the Brown County Taxpayers Association filed a lawsuit in the U.S. District Court for the Eastern District of Wisconsin, claiming the administration violated the constitution’s guarantee of equal protection of the laws. Represented by the Wisconsin Institute for Law and Liberty, the group’s lawsuit is unique in the sense that it blatantly calls out the White House for seemingly providing too much assistance to one race.
During the announcement of the student loan program, the White House said eliminating student loan debt could advance people of color and promote economic equality. The U.S. Department of Education will begin accepting applications for debt relief this month, with a deadline for submission by the end of 2023. Those who obtained a government Pell grant could see up to $20,000 in federal student loans forgiven if they made less than $125,000 per year.
The group believes that this motive and messaging promotes “improper racial motive.” The lawsuit also asserts that the Biden administration unlawfully exploited the Higher Education Relief Opportunities for Students Act, or HEROES Act, as a legal justification for debt forgiveness. Both the Trump and Biden administrations have previously invoked this law, which was initially passed in the wake of the 9/11 terrorist attacks, in order to suspend student loan repayments and interest payments during the COVID-19 pandemic. The law grants the Secretary of Education the authority to waive student financial aid rules during times of war or other national emergencies.
The White House issued a statement following the lawsuit, reiterating that the administration acted lawfully to “give working and middle-class families breathing room.”
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