state Nebraska president experts state Nebraska

Last minute changes to Biden’s student loan handout make it harder to challenge in court: Experts

Reading now: 296
foxnews.com

The sudden decision to cut out more than 700,000 borrowers from President Biden's $400 billion student loan handout could make it harder for opponents of that policy to challenge it in court, and some say the change appears to have been made precisely for that reason.

Soon after Biden's policy was announced, officials said loan forgiveness would only apply to borrowers who consolidated their debts under the Department of Education.That last-minute change made more than 700,000 borrowers ineligible for the handout because their loans are still managed by private companies.

Just before that change was announced, Nebraska and five other states filed a lawsuit arguing that their finances would be adversely hit by the handout.These states argued they had standing to sue because millions of dollars in public pension funds are invested in private companies that manage many of these student loans, and that Biden's program would hurt these companies and lead to lower returns.

Legal experts told Fox News Digital that by making loans managed by these companies ineligible for forgiveness, the Biden administration may have stripped the six states of any standing in court, and likely helped the policy survive an early court challenge.

Read more on foxnews.com
The website celebsbar.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News

DMCA