https://www.wsj.com/articles/huzzah-a-student-loan-plaintiff-frank-garrison-lawsuit-biden-pacific-legal-foundation-11664311394?mod=opinion_lead_pos1
The Biden Administration has to know it lacks the authority to unilaterally cancel a half-trillion dollars in student debt, but it may have calculated that no one could demonstrate the injury needed to bring a legal challenge. Well, maybe someone can.
An Indiana borrower on Tuesday filed a federal lawsuit to block the President’s student loan write-off. He makes a strong case that he is harmed by the loan cancellation and that it’s illegal. Federal courts only hear cases and controversies. As a threshold matter, plaintiffs must show that they have suffered a concrete and particular injury.
Individual taxpayers aren’t directly harmed by the write-off, even if they will ultimately bear the cost. The cancellation is unfair to Americans who repaid their loans or didn’t go to college, but they haven’t suffered a concrete injury. Frank Garrison argues he will be harmed owing to quirks in federal loan repayment plans and Indiana tax law.
Mr. Garrison is enrolled in the federal Public Service Loan Forgiveness program, which limits his monthly payments to a share of his income and discharges the remaining debt after 10 years of payments. The President’s loan forgiveness will immediately cancel $20,000 in debt. But this won’t reduce his monthly payments since they are already capped.
However, it will require him to pay more than $1,000 in state tax on the canceled debt this year. Indiana doesn’t tax Public Service Loan Forgiveness, so he wouldn’t face a state tax liability several years from now. Thus he won’t receive an “additional benefit from the cancellation—just a one-time additional penalty,” according to his suit.