States file lawsuit challenging Biden's student loan repayment plan
Newsy
A group of 11 Republican-led states argue that the president's plan is just like another program that was rejected by the Supreme Court last year.
A group of Republican-led states is suing the Biden administration to block a new student loan repayment plan that provides a faster path to cancellation and lower monthly payments for millions of borrowers.
In a federal lawsuit filed Thursday, 11 states led by Kansas argue that President Biden overstepped his authority in creating the SAVE Plan, which was made available to borrowers last year and has already canceled loans for more than 150,000.
It argues that the new plan is no different from President Biden's first attempt at student loan cancellation, which the Supreme Court rejected last year. “Last time Defendants tried this the Supreme Court said that this action was illegal. Nothing since then has changed,” according to the lawsuit.
The Education Department declined to comment on the lawsuit but noted that Congress in 1993 gave the department the authority to define the terms of income-driven repayment plans.
“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,” the department said in a statement.
