Red States Aim to Block Biden Loan Repayment Scheme

( – In an effort to stop the Biden administration’s newest student loan forgiveness plan, 11 Republican-led states are suing President Joe Biden and Education Secretary Miguel Cardona.

Filed by Kansas Attorney General Kris Kobach in the U.S. District Court for the District of Kansas, the lawsuit notes that the administration has already tried to enact a plan to forgive student loans, with the U.S. Supreme Court ruling in June that the plan was illegal because it exceeded the authority of the federal government. The lawsuit, backed by attorneys general from 10 other Republican-led states, including Utah, Alaska, Texas, Alabama, Idaho, Nebraska, Montana, Iowa, Louisiana, and South Carolina, was filed the same day that a “day of action” was hosted at the White House to promote the SAVE plan.

During a press conference, Kobach called Biden’s attempt to move forward with another plan student loan for student loan forgiveness after the Supreme Court’s ruling “brazen.” He added that a sitting president has not attempted “to defy the Supreme Court” in this way “since the Civil War era.”

Biden’s latest student loan forgiveness plan cuts monthly income-based student loan payments in half and eliminates payments for borrowers earning minimum wage. Borrowers who owe less than $12,000 would have their outstanding debt forgiven after 10 years. According to the Biden administration, many community college students would not need to repay their debt. Announced by the Biden administration in 2022 and made available to borrowers in 2023, the SAVE plan has already canceled loans for over 150,000 student loan borrowers.

The lawsuit alleges that creating the income-driven student loan repayment plan Saving on a Valuable Education (SAVE) would cost taxpayers $475 billion over 10 years. The complaint claims that Biden’s SAVE plan is “every bit as improper” as an attempt to forgive student loan debt as the “unlawful” HEROES Act.

In a Facebook post, Kobach said that the latest student loan forgiveness plan is not only “unlawful for multiple reasons,” it is “also wrong.”

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