Attorney General Ashley Moody is fighting back against Biden’s latest federal overreach attempt. Moody, along with 22 other attorneys general, is challenging the Biden administration’s fourth unlawful attempt to saddle working Americans with someone else’s student loan debt.
“Biden clearly does not believe in accountability or the American judicial system. He pardoned his felony-convicted son, and he continues to try and force hardworking Americans to pay off the student loans of others – even though we challenged these unlawful policies all the way up to the U.S. Supreme Court and won,” Moody said.
The U.S. Department of Education’s new Proposed Rule allows the secretary to use this purported authority to establish new loan balance waivers for borrowers deemed to be “experiencing or has experienced hardship related to [their] loan.” Additionally, the Proposed Rule gives the Secretary authority to cancel debt of borrowers who have $0 monthly payments, as even the mere “existence of the debt itself” causes “hardship.”
Moody and the coalition urges DOE to withdraw the rule because:
- It seizes authority for the Secretary that is not statutorily prescribed by the Higher Education Act, and is currently enjoined;
- It violates separation-of-power principles under the major questions doctrine;
- It includes flawed cost estimates;
- It is based on a statutorily-deficient negotiated rulemaking process; and
- It seeks to implement a massive loan-forgiveness scheme during a lame-duck presidential administration.
