Republican States Sue to Stop Biden’s Student Loan Repayment Plan
TL/DR –
Eleven Republican-led states have filed a lawsuit to challenge President Biden’s new student loan repayment plan, “Save”, arguing it oversteps presidential authority and is a scheme for widespread debt relief. The “Save” plan, which has already erased the debt of over 150,000 enrollees, offers lower monthly payments and a quicker path to cancellation, estimated to cost between $156-230 billion over the next decade. The lawsuit is led by Kansas Attorney General Kris Kobach and supported by attorneys general from Nebraska, Iowa, Texas, Alabama, Alaska, Idaho, Louisiana, Montana, South Carolina, and Utah, who intend to seek a temporary injunction to block the program.
Republican States Sue to Overturn Biden’s Student Loan Plan
Eleven Republican states have initiated a lawsuit to challenge President Biden’s new student loan repayment plan, arguing that it is a systematic approach to provide debt relief, previously deemed unconstitutional by the Supreme Court.
Kansas Attorney General Claims Overstepping of Authority
Kansas Attorney General Kris Kobach leads the federal lawsuit, alleging that Biden’s ‘Saving on a Valuable Education’ or Save program oversteps presidential authority. This argument echoes previous objections to Biden’s plan to forgive up to $20,000 in federal student loans.
Student Loan Repayment Plan Sparks Controversy
The Save program, launched in October, offers reduced monthly payments for millions of borrowers, expediting debt cancellation. The expected cost of the plan over the next decade ranges from $156 billion to $230 billion, sparking controversy among conservatives.
Educational Department Stands Firm Amidst Lawsuit
The Education Department, declining to comment on the lawsuit, stated that the Biden-Harris Administration intends to provide support and relief to borrowers nationwide, despite opposition from Republican officials.
Multiple States Join Lawsuit Against Save Program
The lawsuit, joined by attorneys general from ten other states, seeks a temporary injunction to halt the Save program. However, the Save program, unlike the previous debt relief plan, is backed by a different legislative authority.
Opposition Claims Overreach of Higher Education Act
Opponents argue that the Higher Education Act does not permit broad-scale debt relief. However, the Education Department maintains that it has used the Act four times to expand income-driven repayment options, indicating established precedent.
Save Program Faces Backlash for Broad Debt Relief
Conservatives argue that broad debt relief unfairly burdens taxpayers who did not attend college or self-financed their education. This concern echoes previous opposition to student loan forgiveness programs.
White House Continues to Champion Save Program
The lawsuit comes as the White House continues to promote the Save program. With over 7.7 million borrowers enrolled, the administration estimates that the plan could save the average borrower $1,000 annually by reducing income-dependent monthly payments.
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