DOJ’s Student Loan Giveaway Defense Is Keep Them All-Powerful

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‘The Supreme Court is about to hear arguments on Biden’s plan to forgive $20,000 in student debt with taxpayer dollars, Yahoo reports. The DOJ reasons it could lead to lawsuits against “virtually all federal action” if it’s overruled.

Federal borrowers have $20,000 in loans ‘forgiven’ even if they make as much as $125,000 yearly. Some get double the amount of forgiveness’ based on questionable criteria.

The Biden DOJ submitted a filing to justify the constitutionality.

According to Business Insider, as part of its 86-page brief, the DOJ expressed concern that if the Supreme Court decides to stand by the 8th Circuit’s November ruling and invalidate Biden’s debt forgiveness program, it will set a bad precedent for future legal judgments.

The DOJ wants them to find it constitutional because they might get sued for all the [illegal] Federal actions.

Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina lead the lawsuits.

The Biden administration forgave the loans with taxpayer dollars for political gain. claimed the lawsuits were baseless and politically motivated.

A St. Louis-based student loan company MOHELA was included in the case by the state of Missouri. MOHELA, one of America’s largest student loan servicers, currently has a contract with the federal government to service student loans.

Missouri contends that MOHELA will lose money under Biden’s relief.

If the Supreme Court quashes this cancellation program, it could have “startling implications” for future claims, according to the filing.

“Virtually all federal action — from law enforcement to collecting taxes to managing property — has some side effect on government finances,” the filing read. “If such side effects were enough to stand, then every state would have the right to challenge almost any federal policy.”

“(B)anks could sue anyone who causes financial harm to their borrowers, credit-card companies could sue anyone who causes financial harm to their customers, and governments could sue anyone who causes financial harm to their taxpayers,” it adds.

The federal government under Biden operates outside the law. Biden operates like a king. The DOJ wants all federal actions to take precedence. This is a big government administration.


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John Vieira
John Vieira
2 years ago

The inmates want a ‘strangle hold’ on the finances of the asylum…

GuvGeek
GuvGeek
2 years ago

Only the House (and Senate) would have the power to forgive those loans because the Government would have to fund them. Loan forgiveness is a spending bill and must originate in the House of Representatives, not the White House.