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Judges halt Biden rule offering student debt relief for those alleging colleges misled them

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Career Colleges and Schools of Texas, an association of for-profit higher learning institutions, filed a lawsuit against the rule in February. Among its complaints was that the rules are so broad that they cover even unintentional actions by a college. They also said the rule unconstitutionally gives an executive branch agency, the Department of Education, what amounts to the power of a court in deciding whether to grant claims for debt relief.

 

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Groups challenge Biden’s new student loan forgiveness plan in wake of Supreme Court defeat​


Nonprofit organizations are challenging President Biden’s new student loan forgiveness plan, which was rolled out just after the Supreme Court batted down his last attempt in June.

The Cato Institute and the Mackinac Center for Public Policy, represented by the New Civil Liberties Alliance, filed a federal lawsuit in Michigan last week against the feds over the “One-Time Account Adjustment” plan, which would give more than 800,000 student loan borrowers forgiveness totaling about $39 billion.

The groups argue the move decreases the incentive for borrowers to work in the public service field — including at their institutions — and that the administration violated federal law in implementing the plan. They’ve asked the court to block the forgiveness.

 
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CBO says federal deficit will reach $1.7 trillion this year, third worst in history​


The Congressional Budget Office revised its projections Tuesday, saying it now expects the federal government to run a $1.7 trillion deficit this year as inflation hits Uncle Sam hard.

Just a few months ago, CBO said the deficit would be $1.5 trillion this year. But the government is still struggling to collect anticipated revenue even as spending rages unchecked, splashing even more red ink across the budget for fiscal year 2023.

The grim new projection comes even though the government got a windfall with the Supreme Court’s ruling in June invalidating President Biden’s broad student loan forgiveness scheme. That will add hundreds of billions of dollars back onto the government’s balance sheet.

 
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