An Indiana resident filed a lawsuit Tuesday in the U.S. District Court for the Southern District of Indiana against President Biden’s student loan forgiveness program.
Plaintiff Frank Garrison, a lawyer with the Pacific Legal Foundation, argues that with Biden’s program he will have to pay more taxes than he otherwise would have. PLF is a libertarian nonprofit law firm.
According to a press release from PLF, Garrison is enrolled in the Public Service Loan Forgiveness Program. This program provides loan forgiveness for people who work in nonprofit and public service careers after they make payments for 10 years.
When Garrison receives the $20,000 from Biden’s plan, he will have to pay taxes on it, but he wouldn’t have to pay taxes on the loan relief he receives from PSLF after 10 years of payments, according to the release.
PSLF borrowers who have served less than 10 years in public service, like Garrison, may qualify for more student loan forgiveness under Biden’s plan, according to the White House.