Biden-Harris Administration's Student Loan Forgiveness Plan Raises Serious Red Flags

The Biden-Harris administration's pursuit of student loan forgiveness has taken a reckless turn, with plans moving from persistent to relentless and now facing a reckoning in the courts. Despite the Supreme Court ruling the administration's initial plan illegal in 2023, the administration has announced a second plan that was recently paused by courts, and a third plan that may be the most illegal yet. The most recent development has seen the department sending an email to borrowers with an option to opt out, but the contents of the plan remain unclear.

Key Takeaways:

The Biden-Harris administration's student loan forgiveness plans have been ruled illegal by the Supreme Court twice, with the second plan being paused by courts while its legality is determined.
The administration's third plan has not been finalized, but it is likely to be the most illegal due to its lack of transparency and compliance with regulations.
The email sent to borrowers with an option to opt out raises red flags, as borrowers are being asked to make a decision without knowing what they are opting out of.
The administration may be attempting to ensure that no borrowers have standing to sue over the plan by forcing them to opt out before the plan is finalized.
Experts argue that the administration is trying to bypass regulations by forgiving loans immediately after finalizing the plan, which is illegal.
A new lawsuit from seven state attorney generals alleges that the administration directed student loan servicers to cancel debt before the plan is finalized.
A federal court in Georgia has issued a temporary restraining order to prevent the administration from forgiving any loans for the next several weeks.

Statistics:

2023: The Supreme Court ruled the administration's initial plan for student loan forgiveness illegal.
2022: The administration announced its first plan for student loan forgiveness.
2 days: The time between the filing of the lawsuit and the issuances of a temporary restraining order by a federal court in Georgia.
60 days: The waiting period required by the Congressional Review Act for major changes to regulations to be implemented.
30 days: The waiting period required by the Congressional Review Act for other regulations to be implemented.
July 1: The start date for higher education regulations from the Department of Education to become effective.

Sources:

Cato Institute: Andrew Gillen's article on the Biden-Harris administration's student loan forgiveness plan
Preston Cooper's article on the new lawsuit from seven state attorney generals