“That has to be an act of Congress.”
Remember, even Nancy Pelosi said that Biden doesn’t have the power to do this.
The College Fix reports:
Cato Institute sues to stop Biden $400 billion student loan bailout
The libertarian Cato Institute filed a lawsuit to stop President Joe Biden’s student loan bailout with the help of the New Civil Liberties Alliance. The cost of the bailout has been estimated at around $400 billion.
The federal lawsuit argues that Biden’s student debt cancellation plan will put the think tank at a disadvantage when hiring and retaining employees.
“The mass cancellation of federal loans reduces—and in many cases eliminates—the congressionally enacted incentives for such employees to work at 501(c)(3) organizations like Cato,” attorney Sheng Li told The College Fix via email.
The Public Service Loan Forgiveness program “provides strong incentives for talented employees and jobseekers who carry student-loan debt to devote a significant portion of their careers to nonprofit work,” according to the lawsuit.
Li told The Fix that the next step is a hearing November 17.
The Biden initiative wipes away the “materially improved position to attract and retain talented employee-borrowers” that nonprofits gain from the Public Service Loan Forgiveness program, according to the lawsuit.
Li, the attorney, also argued that the bailout is unconstitutional by appropriating money without the approval of Congress. Li told The Fix that Speaker of the House Nancy Pelosi previously said Biden could not bail out borrowers by executive action.
“People think that the President of the United States has the power for [federal student] debt forgiveness,” Pelosi has said. “He does not. He can postpone. He can delay. But he does not have that power. That has to be an act of Congress.”
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