A coalition of Republican-led states, including Missouri, Georgia, Alabama, Arkansas, Florida, North Dakota, and Ohio, has filed a legal challenge against the federal government. Adam Schultz / Wikimedia
The lawsuit, initiated by Missouri Attorney General Andrew Bailey, aims to halt plans that would reduce or eliminate debt for millions of student loan borrowers, The Washington Post reported. Nathan Papes/Springfield News-Leader / USA TODAY NETWORK
The lawsuit targets a new proposed regulation designed to help borrowers excluded from current forgiveness programs or struggling with overwhelming debt.
The plan, developed through federal negotiated rulemaking, is scheduled for approval this fall. Pixabay / Pexels
The Republican attorneys general claim they've obtained documents showing the Education Department instructed federal loan servicers to begin canceling hundreds of billions of dollars in loans as early as September 3 or 7, before the rule's official finalization.
They argue the government lacks the authority for such actions. Fry1989 / Wikimedia
Bailey stated, "This is the third time the Secretary has unlawfully tried to mass cancel hundreds of billions of dollars in loans. Courts stopped him the first two times, when he tried to do so openly. So now he is trying to do so through cloak and dagger." Missouri State Archives / Wikimedia
He added, "The Biden-Harris Administration is dedicated to saddling working Americans with Ivy League debt, even if they have to break the law to do it. Our latest lawsuit challenges their third and weakest attempt to mass-cancel student loans in the dark of night without letting Congress—or the public—know about it. That's illegal." Nathan Papes/Springfield News-Leader / USA TODAY NETWORK
This lawsuit follows two previous legal challenges by Republican-led states this year to block Biden's debt forgiveness plans. The White House / Wikimedia
In June 2023, these states successfully persuaded the Supreme Court to block a $430 billion program that would have canceled up to $20,000 in debt per borrower for up to 43 million Americans. Mathieu Landretti / Wikimedia
After this setback, the administration introduced the SAVE plan to reduce monthly payments and accelerate loan forgiveness for some borrowers.
However, Republican-led states again obtained an injunction through a federal appeals court, arguing the plan lacked congressional authority. Mikhail Nilov / Pexels
Despite ongoing litigation, the Education Department has stated that SAVE enrollees will be placed in an interest-free forbearance. Mikhail Nilov / Pexels
