Republican-led states' new lawsuit aims to block Biden's student loan repayment plan
Published Date: 3/29/2024
Source: axios.com

Eleven Republican-led states are suing the Biden administration over its latest efforts to provide student debt relief for millions of borrowers.

Why it matters: The administration introduced the Saving on a Valuable Education (SAVE) plan after the U.S. Supreme Court blocked President Biden's signature student loan forgiveness program last June in a majority ruling that said the plan exceeded the federal government's authority.


Driving the news: "Last time Defendants tried this the Supreme Court said that this action was illegal," states the lawsuit, filed in the U.S. District Court for the District of Kansas.

  • "Nothing since then has changed, other than introducing more legal errors into this Rule's underlying analysis."

The big picture: The Biden administration has pledged to lower student debt burdens and give borrowers breathing room with student loan repayment programs such as the income-driven SAVE plan.

  • However, some Republicans have characterized Biden's effort as a "bailout for the wealthy."
  • The Kansas-led lawsuit is seeking to have the SAVE plan immediately halted. The attorneys general from Alabama, Alaska, Idaho, Iowa, Louisiana, Montana, Nebraska, South Carolina, Texas and Utah joined the suit.

What they're saying: Kansas Attorney General Kris Kobach (R) said in a Facebook post: "Aside from the fact that Biden's loan forgiveness plan is unlawful for multiple reasons, it's also wrong."

The other side: "The Biden-Harris Administration won't stop fighting to provide support and relief to borrowers across the country — no matter how many times Republican elected officials try to stop us," an Education Department spokesperson said in a statement to media.

Go deeper: Biden cancels nearly $6B in student debt for public service workers