Biden’s student loan forgiveness plan: the gloves are off

 According to the Wall Street Journal, a Mr Frank Garrison, of Indiana, has raised a legal challenge to President Joe Biden’s student loan forgiveness plan. 

His grounds are related to the fact that he (Mr. Garrison) is currently enrolled in the Public Service Loan Forgiveness program, which limits a person’s monthly payments to a share of their income, and discharges the remaining debt after 10 years.  Wait for it…

As you probably know, President Biden’s plan would cancel $20,000 of debt, however, the proposed plan wouldn’t reduce Mr. Garrison’s debt (because of his prior arrangement under the Public Service Loan Forgiveness program, which was created as part of the Heroes Act to support student loan borrowers during COVID).

Yikes.

Mr. Garrison’s concern is that Biden’s new plan would force him to pay $1000 in state tax on the canceled debt this year.  Because Biden’s plan would start canceling qualifying student loan debt this year (circa October, which is just days away). 

Ugh.   

This additional tax burden is most unwelcome; Mr. Garrison likely sought the PSLF program in the first place in order to help him manage his student loan debt-related expenses, so the additional payments could be quite onerous for him and his budget.

Many conservative pundits and commentators are up in arms about Biden’s proposed plan, saying that the President overstepped his executive role.  We will see if Mr. Garrison’s challenges provide the needed springboard they need to stymie the President’s plans. 

While I know that there are reasons *not* to like Biden’s proposed student loan forgiveness plan (yesterday, Congress estimated that it could cost the nation over $420 Billion ), there is much good that could come from forgiving student debt…and to reducing the overall cost of education for all those who seek it.

What do you think?

Watch this space for updates.