Big lawsuit against Biden student loan forgiveness gets shot down. Plaintiff now exempt from relief

[Tadpole Raisin]

This should shut them up. Soooo satisfying. He got owned!

https://www.rawstory.com/biden-student-debt-relief/

The lawsuit was filed on Tuesday by Frank Garrison, an Indiana attorney who works for the Pacific Legal Foundation. Garrison said he did not want $20,000 worth of forgiven debt because he would have to pay more than $1,000 in Indiana state taxes.

One day later, on Wednesday, the U.S. Department of Education responded, saying Garrison would not suffer irreparable harm.

“ Upon receiving this lawsuit and reviewing Plaintiff’s filings, the Department has already taken steps to effectuate Plaintiff’s clearly stated desire to opt out of the program and not receive $20,000 in automatic cancellation of his federal student loan debt, and so notified Plaintiff’s counsel today," the Department of Education responded.

Link of decision:

https://storage.courtlistener.com/recap/gov.uscourts.insd.203163/gov.uscourts.insd.203163.13.0.pdf

[Stinky The Clown]

1. Huzzah!!!

[Tadpole Raisin]

4. So brilliant of Biden to include an opt out for those who don't want student loan forgiveness.

Good - lose 20k in forgiveness cuz you don’t want to pay taxes on it.

Is it wrong for me to feel so happy about this?

[Hermit-The-Prog]

9. Yes, very, very wrong of you...

So lemme laugh for you.

[William Seger]

17. Hey, that's the argument against raising corporate taxes

Corporations won't expand because they don't want to pay tax on the profits.

[Grins]

19. More fun? Watch this guy now take the pay-off!

Hey! He’s a Republican!

[ellie]

2. Hahahahahahahaha!

[Timewas]

3. JHC

They get dumber every day

[Amishman]

30. His stated goal was not his real goal

Just another RW zealot willing to take personal loss for their larger cause. His goal was to break Joe's program.

[targetpractice]

5. Idiot...

Can't he do math?

[plimsoll]

16. I don't think math is required for a JD.

[MichMan]

18. That was the basis for his challenge

He was working toward forgiveness under the federal Public Service Forgiveness program.

Once he completed four more years, he would be eligible to have his loans dismissed as he qualified under that program. In that case there would be no tax penalty, so it would have cost him $ to take the new forgiveness plan, thus making his math correct.

[NickB79]

20. I know several people denied forgiveness despite meeting the criteria

He may wish he went with Biden's relief program.

[3Hotdogs]

23. I don't believe he was looking for the "pie-in-the-sky" forgiveness that has been argued about and

hoped for during the last 10 years.

Rather, he was working in public service and a % of debt gets eliminated for every year you work. I had a similar loan that was forgiven when I was a teacher.... 10% per year was eliminated from my debt until I owed nothing. I didn't pay taxes on any of the debt that I didn't pay.

[MichMan]

24. Right, that is why taking the current forgiveness which is taxable would have cost him $

Even if you disagree with his lawsuit, he apparently understands math just fine.

He has 4 years to go until he reaches the 10 years you are referring to.

[Tadpole Raisin]

27. Thanks for your info

I tried to edit the post to include your comment but it wouldn’t let me. I think I messed up how I did the excerpt tags. I’m going to try again.

[MurrayDelph]

6. To quote the great Barbara Billingsley

Chump don't want de help, chump don't get de help.

[crickets]

14. That is one of my favorite movies.

And you just quoted one of the best scenes from it! 🤗

[Iggo]

7. Well, he showed them!

[underpants]

11. Gawd

Here, have $19,000. No thanks.

[Grown2Hate]

8. I'm gonna take a wild guess that he didn't

major in math.

[MichMan]

25. He is a lawyer

He says he is on track to have his loan forgiven in four more years under the Public Service Loan forgiveness program tax free.

His math skills told him that getting forgiveness that was taxable would cost him more than getting it tax free.

[Grown2Hate]

28. Without having understood the whole story,

I appreciate the full context. Thank you! I'll have to ACTUALLY read about it now, though. Still feels a little like, "If it doesn't help me, SCREW everyone else", but that's again my assumption (maybe that wasn't his overall intent); now I actually want to read about it.

[LiberalFighter]

31. I didn't know attorneys scamming the public were eligible for that program

[Brainfodder]

10. Tax whining is never a good idea?

If it is what is asked of you, you are lucky.

Greedy assholes with offshore accts should lose every nickel, I want some govt spite!

[mike_c]

12. I suspect his education was unsuccessful.

[Raftergirl]

13. And behind it all is Koch

“In both stories, we later learn that Garrison is being represented in the case by his employer, Pacific Legal Foundation (PLF), which the Washington Post describes as a "conservative public interest law firm." But what you will not learn from either story is that the Pacific Legal Foundation receives extensive funding from right-wing billionaires. And this "public interest law firm" has a record of filing lawsuits that advance its donors' economic and ideological interests.

Among the PLF''s major donors are entities controlled by right-wing billionaire Charles Koch, CEO of Koch Industries. A Popular Information review of tax filings from 2019 and 2020, the latest available, found that the Charles Koch Foundation and the Charles Koch Institute donated $2,331,550 to PLF in those two years.”

https://popular.info/p/billionaire-backed-legal-group-sues?r=7hhkr&%3Butm_medium=ios&%3Butm_campaign=post

[gratuitous]

15. Maybe instead of clogging the courts with frivolous lawsuits

The Pacific Legal Foundation should pay the taxes people may be liable for? I mean, if they've got so much money laying around that this is what they spend it on, they could put it to some good use.

[calimary]

21. Hmmmm... I like it.

[spudspud]

22. LOL. Hoisted by his own petard.

Wonder if his employers and good Repuglican friends will help him with $20k worth of student loan forgiveness he just screwed himself out of.

[MichMan]

26. He didn't screw himself out of anything

He says he will have his loan forgiven in four more years tax free under the Public Service Loan forgiveness federal program.

[spudspud]

29. Meh.

He works for a rethuglican group and they were trying to screw over folks and the Biden admin-- and you know it. He could have called the DOE up and tried to opt out of the program, but instead he was the right's golden goose with standing to sue. His is a contrived dilemma. Assuming he wants to keep working for a little over 4 more years in a low paying "public interest" (lol, more like anti-public interest) job, he better hope that the Feds do forgive whatever he's still owing at that point. Right now he's looking (was?) at a guaranteed exchange of $20k in debt for about $1k in Indiana taxes vs. continued monthly loan payments (even if income limited) for over another 4 years, continued low income for over 4 years, then hoping they forgive the remainder of his debt.