In a fresh legal challenge, seven Republican-led states have filed a lawsuit against the Biden administration's latest attempt to provide student loan relief.
According to Deseret News, the states claim that the administration is planning to unlawfully cancel hundreds of billions of dollars in student loans before the rule is finalized.
The lawsuit, spearheaded by Missouri Attorney General Andrew Bailey, targets a new rule proposed by the Education Department in April 2024. It comes just a week after the U.S. Supreme Court refused to lift an injunction on the Biden administration's previous loan repayment plan, known as Saving on a Valuable Education (SAVE). This latest legal action represents another obstacle in President Biden's efforts to fulfill his campaign promise of canceling student loan debt.
Missouri, Georgia, Alabama, Arkansas, Florida, North Dakota, and Ohio are the states involved in this lawsuit. They allege that they have uncovered documents revealing the Education Department's intentions to implement the new program without proper public notice since May 2024. The lawsuit claims that federal contractors were instructed to begin loan cancellation as early as September 3, 2024.
Attorney General Bailey expressed confidence in the state's legal position, stating:
We successfully halted their first two illegal student loan cancellation schemes; I have no doubt we will secure yet another win to block the third one.
The Republican attorneys general argue that the actual cost of this new cancellation rule would be significantly higher than initially estimated, potentially reaching over $600 billion when combined with the SAVE plan.
The Education Department's proposed rule seeks to provide partial or full debt relief to four specific groups of borrowers.
These include individuals who owe more now than when they started repayment, those who have been making payments for at least two decades, borrowers eligible for loan forgiveness but haven't applied, and students who graduated from programs deemed to have "low financial value."
While the Education Department has declined to comment on the lawsuit directly, a spokesperson emphasized that they will continue to prepare for possible debt relief this fall, following the finalization of the proposed rules introduced in spring 2024.
According to the Center for American Progress, the Biden administration has already canceled $168.5 billion in student loans for nearly 4.8 million borrowers through five major programs.
However, these efforts have faced consistent opposition from Republican lawmakers who argue that such debt relief unfairly shifts the financial burden to taxpayers who didn't attend college or have already paid off their loans.
Senator Mitt Romney and other Republican legislators have been vocal critics of Biden's student debt relief plans, claiming they would place an undue burden on American taxpayers. The ongoing legal battles and political debates surrounding student loan forgiveness highlight the complex and contentious nature of this issue in American politics.
The latest lawsuit filed by seven Republican-led states against the Biden administration's new student loan relief plan marks another chapter in the ongoing struggle over student debt forgiveness. The Education Department aims to provide relief to millions of borrowers but faces strong opposition from Republican lawmakers who argue the plan is unlawful and financially irresponsible. As legal challenges continue, the future of student loan relief remains uncertain, with both sides firmly entrenched in their positions.
