Indianapolis News

Biden administration asks federal judge in Indiana…

INDIANAPOLIS (INAS) — The Biden administration has asked an Indianapolis federal court to dismiss a lawsuit contesting the student loan forgiveness scheme.

According to the arguments, which were filed this week, the plaintiffs in the claim lack legal standing to sue.

The plaintiffs, two Indiana citizens, argue that President Biden’s plan would require them to pay state income taxes on the amount of their debt forgiven.

Federal government attorneys dismiss that claim as irrelevant because the Department of Education has opted out of the automatic forgiveness scheme for both plaintiffs, noting in the brief:

“Anyone who is eligible for automatic relief, including Plaintiffs, can opt out and refuse to receive any student loan debt relief.” Plaintiffs suffer no prospect of permanent or irreparable harm. Indeed, federal government attorneys have claimed that the issue is moot since the Department of Education has pulled out of the automatic forgiveness program. In the brief, they stated:

“Anyone eligible for college loan relief, including Plaintiffs, can choose not to receive it.”

On Thursday, Supreme Court Judge Amy Coney Barrett dismissed a different complaint concerning student loan cancellation.