New lawsuit from small business group seeks to block Biden student debt relief plan

An advocacy group for small businesses have filed a new lawsuit which is aimed at blocking President Joe Biden’s bill to forgive a portion of student loan debt for millions of eligible U.S. citizens.

The conservative Job Creators Network Foundation filed its lawsuit on Monday, stating that the Biden administration violated federal procedures by failing to seek public input about the bill. This lawsuit joins other litigation filed by Republican lawmakers and other Libertarian groups as the Biden administration is attempting to pass its debt cancellation plan ahead of the November midterm elections.

Elaine Parker, who is president of the Job Creators Network Foundation, hit out at the program and issued a statement to the Washington Examiner referring to it as executive overreach.

“The administration’s action does nothing to address the root cause of unaffordable tuition: greedy and bloated colleges that raise tuition far more than inflation year after year while sitting on $700 billion in endowments,” Parker said.

“This bailout is going to affect everyone in this country because of the mass size of the program, And everyone should have the opportunity to provide their views to the government, These universities need to be held accountable for this student debt crisis,” he went on to say.

The lawsuit includes two plaintiffs, one of these plaintiffs is for those not eligible for debt forgiveness and the other is those who are ineligible for the full $20,000 debt forgiveness as they didn’t receive a Pell grant, according to court records.

Parker said that universities were given unfair benefits under Biden’s program, before going onto say that “colleges escape responsibility for their actions creating the student loan crisis.”

“They are given carte blanche to continue their ridiculous pricing. Bailing out this debt only kicks this problem down the road,” Parker added, implying the loan forgiveness plan would cause college tuition costs to soar even higher.

Biden’s student debt forgiveness program will cancel $10,000 in student debt for those who earn less than $125,000 a year or households who earn less than $250,000. Pell grant recipients, who usually demonstrate further financial need, will be eligible for up to $20,000 in forgiveness.