Two college graduates who aren’t eligible for the full $20,000 of debt relief possible under the loan forgiveness plan filed a lawsuit on Oct. 10 against the Biden administration, saying it skirted regulatory processes and arbitrarily left out many borrowers.
One of the plaintiffs, Myra Brown, completed a graduate degree financed through the Federal Family Education Loan Program. Although the Biden administration originally said borrowers could consolidate these loans into federal Direct Loans, thereby making them eligible for the debt relief, the U.S. Education Department reversed that policy in late September — likely to fend off legal challenges.
The other plaintiff, Alexander Taylor, financed his undergraduate degree through federal student loans but did not receive Pell Grants, making him ineligible for the full $20,000 loan forgiveness possible through the relief plan.
They argue that the Education Department didn’t go through a notice and comment period when unveiling this plan, depriving them of the ability to voice their opinions.
“Plaintiffs want an opportunity to present their views to the Department and to provide additional comments on any proposal from the Department to forgive student loan debts,” they argued.
The pair asked a federal judge to block the plan until their legal challenge is resolved. A hearing on the matter is scheduled for Tuesday.
