Biden administration asks federal judge in Indianapolis to dismiss student loan cancellation lawsuit
INDIANAPOLIS (WISH) — The Biden administration is asking a federal judge in Indianapolis to throw out a lawsuit challenging the student debt cancellation plan.
The arguments, filed this week, say the plaintiffs in the suit lack legal standing to sue.
The plaintiffs, two residents of Indiana, claim the plan announced by President Biden would force them to pay state taxes on the amount of debt forgiven.
Federal government lawyers call that argument moot since the Department of Education has opted both plaintiffs out of the automatic forgiveness plan, writing in the brief:
“Anyone eligible for automatic relief—including Plaintiffs—can opt out and choose not to receive any student loan debt relief. Accordingly, Plaintiffs still face no threat of harm, irreparable or otherwise, and the Court should again deny their motions for emergency relief—and indeed, dismiss this case altogether—for that reason alone.
Nor does the public interest support an injunction that would delay or deny necessary relief to millions of federal student loan borrowers merely because two individuals who would prefer not to receive that relief would rather pursue a federal lawsuit than simply opt out.”
Judge Richard Young rejected a request last month to block the student loan cancellation plan and strongly hinted the plaintiffs may lack standing to sue.
Supreme Court Justice Amy Coney Barrett rejected a separate loan cancellation lawsuit on Thursday.