Thousands of student-loan borrowers got their debt wiped through a new repayment reform.11 GOP states just filed a lawsuit Source: Business Insider
Mar 28, 2024, 8:50 PM EDT
The lawsuits to block President Joe Biden’s student-debt relief efforts are back. On Thursday, 11 state attorneys general — led by Kansas’ Kris Kobach — filed a lawsuit to block Biden’s SAVE income-driven repayment plan, implemented over the summer to give borrowers cheaper monthly payments with a shorter timeline for relief.
The lawsuit, filed in Kansas’ district court against Biden and Education Secretary Miguel Cardona, stated that the lawsuit is now necessary to prevent Defendants from continuing to flout the law, which includes ignoring Supreme Court decisions, referring to the high court’s decision at the end of June to strike down Biden’s first attempt at broad student-loan forgiveness using the HEROES Act of 2003.
Once again, the Biden administration has decided to steal from the poor and give to the rich, Kobach said during a Thursday press conference. He is forcing people who did not go to college, or who worked their way through college, to pay for the loans of those who ran up exorbitant student debt. This coalition of Republican attorneys general will stand in the gap and stop Biden.
Last month, the Education Department implemented a provision of the SAVE plan ahead of schedule: $1.2 billion in debt relief for 153,000 borrowers who originally borrowed $12,000 or less and made as few as 10 years of qualifying payments. The lawsuit argued that the relief was in defiance of the Supreme Court and asked the federal court to declare the SAVE plan unconstitutional and require borrowers to make payments.
