After NCLA Pressure, Department of Education Scraps Illegal Student Debt Cancellation Plans


After NCLA Pressure, Department of Education Scraps Illegal Student Debt Cancellation Plans

Washington, D.C., Dec. 20, 2024 (GLOBE NEWSWIRE) -- Today, as the New Civil Liberties Alliance requested, the U.S. Department of Education announced the withdrawal of proposed rules that would have combined to unconstitutionally cancel more than $250 billion of federal student loan debt owed to the Treasury. NCLA had submitted comments in May 2024 and again in December urging the Department to abandon these plans, pointing out that Congress has repeatedly declined to erase such debt, and the Department lacks legal authority to do so unilaterally. NCLA celebrates this important victory in preventing abuse of executive power.

The Department's proposals, published in April and October, would have cancelled hundreds of billions of dollars at taxpayer expense. The first plan included a wide range of loan-cancellation proposals, which the Department estimated to amount to nearly $150 billion in total. The second plan would have cancelled at least $112 billion for borrowers whom the Department deemed to be in "hardship" based on a 17-factor test that the Department invented out of thin air.

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