Republican states file lawsuit to block Biden’s student loan forgiveness plan
Six Republican-led states filed a lawsuit Thursday to overturn President Biden’s plan to forgive up to $20,000 in student debt for millions of borrowers, as conservatives advance legal challenges against the one of the administration’s flagship economic policy initiatives.
The new lawsuit, filed in federal court in Missouri, comes two days after a conservative Indiana attorney filed a separate lawsuit against the administration seeking to reverse the policy.
The White House policy would forgive up to $10,000 in federal student loan debt for borrowers who earn less than $125,000 a year, or less than $250,000 for married couples, or up to $20,000 for those who have received Federal Pell Grants. The Biden administration has been adamant that it has the legal power to cancel student debt, citing a 2003 law giving the executive branch broad power to overhaul student loan programs.
Missouri Attorney General Eric Schmitt (R), who is leading the lawsuit, said in a statement that the policy would worsen inflation for Americans who do not benefit from student debt forgiveness. Arkansas, Iowa, Kansas, Nebraska and South Carolina joined Missouri in filing the lawsuit. Schmitt is also the Republican nominee for the U.S. Senate seat from Missouri in this fall’s election.
“No law authorizes President Biden to unilaterally release millions of individuals from their obligation to repay loans they have voluntarily taken out,” the lawsuit states.
This is breaking news and will be updated.