"Today, Pacific Legal Foundation filed suit against the US Department of Education to block its illegal move to cancel more than $500 billion in student loan debt," the group said in a statement.
The White House announced last month that student loan payments will resume next year and at least $10,000 of student loan debt will be canceled for each eligible borrower. An additional $10,000 of debt will be canceled for eligible borrowers who also received a federal Pell grant.
In March 2020, the US Department of Education granted forbearance to holders of federal student loans amid the onset of the COVID-19 pandemic, with an estimated 60% of all borrowers taking advantage of the program.
PLF’s attorney Caleb Kruckenberg said it is illegal for the executive branch to create a $500 billion program "by press release, and without statutory authority or even the basic notice and comment procedure for new regulations."
The case filed in US District Court for the Southern District of Indiana, according to the statement.
PLF has received funding from right-wing activists and organizations such as the Koch family, according to a posting by the House natural resources committee.