INDIANAPOLIS — A California Libertarian group suing over President Joe Biden's plan for student debt cancellation has submitted an amended complaint after a federal judge rejected its initial legal challenge.
The amended complaint filed Monday on behalf Frank Garrison, an Indiana resident and attorney for Pacific Legal Foundation, states that Biden's plan would "cause Mr. Garrison to incur a financial obligation that he would not otherwise have faced" since Indiana plans to tax loan forgiveness as income.
It argues that Garrison would face a state income tax liability of more than $1,000 for 2022 and that he wouldn't incur that liability if not for the automatic cancellation of student debt.
As part of the complaint, Garrison has requested a temporary restraining order to prevent the U.S. Department of Education from enacting loan cancellation.
Garrison is also joined in the lawsuit by plaintiff Noel Johnson, an Indiana resident who is also qualified for student loan forgiveness.
Originally, U.S. District Court Judge Richard L. Young of the Southern District of Indiana denied Garrison's request to temporarily block the plan, saying Garrison "cannot be irreparably harmed" by it.
Last month, Pacific Legal Foundation, a legal advocacy group filed a lawsuit against the U.S. Department of Education and U.S. Secretary of Education Miguel Cardona alleging that the plan would create a tax liability for those eligible for automatic debt cancellation.
Indiana is one of seven states that plans to tax any debt forgiven in Biden's plan, so Garrison would owe more than $1,000 in state and local taxes.
Biden's plan promises to cancel $10,000 in federal student debt for borrowers with incomes of less than $125,000 per year or households making less than $250,000. Those who received federal Pell Grants to attend college would get an additional $10,000 erased.
An estimated eight million people won't have to apply for student loan forgiveness because they're on Income-Driven-Repayment plans. The government knows how much they make and if they'd qualify. Garrison is one of those people, which is why his legal team thinks he has a case, according to the AP.
Any student debt forgiven under Biden's plan is also considered taxable income in Arkansas, California, Minnesota, Mississippi, North Carolina and Wisconsin. That is, unless the laws in those states are changed, according to the AP.
-
5 people, including firefighter, injured in apartment fire in Connersville
Five people, including a firefighter, were injured in an apartment fire in Connersville early Sunday morning.
W.A.Y.S. uses theme of empathy to encourage youth to engage in community service
W.A.Y.S., an organization with a focus on youth mental health, hosted a fundraiser on Sunday to promote their theme of empathy. Over past few weeks, kids volunteered at several local organizations.
Motorcyclist dies in crash on Indy's south side
A motorcyclist is dead after a crash with a vehicle on the south side of Indianapolis Sunday. Police said the driver of the vehicle stayed on scene.
Richardson returns to lead Colts past Jets
Time and time again Sunday against the Jets, Richardson was able to make the kind of plays that showed why he’s back as Indy’s starting quarterback
