Lawsuit filed by Republican states seeks to halt President Biden’s student loan repayment plan, Save

Legal Challenge to Student Loan Repayment Plan

Eleven Republican-led states have filed a lawsuit to challenge President Biden’s new student loan repayment plan. They argue that the program is a way to provide widespread debt relief, a move that the Supreme Court had previously struck down.

New Student Loan Repayment Program

The federal lawsuit, led by Kansas Attorney General Kris Kobach, echoes the claims from a previous case that overturned Biden’s plan to forgive up to $20,000 in federal student loans. The states allege that the president has once again exceeded his authority in creating the Saving on a Valuable Education program, also known as Save.

Controversy Over Student Loan Forgiveness

The Save plan, launched in October, offers lower monthly payments for millions of borrowers and expedites the path to debt cancellation. It has already wiped out the balances of over 150,000 enrollees who initially borrowed less than $12,000 and have been making payments for a decade. The estimated cost of the Save plan varies between $156 billion and $230 billion, sparking criticism from conservatives.

Administration’s Response

The Education Department declined to comment on the lawsuit but emphasized its commitment to fixing the student loan system by creating a more affordable repayment plan. The administration vows to continue supporting borrowers despite opposition from Republican officials.

Legal Action and Authority

Attorneys general from several states are seeking a temporary injunction to halt the Save program. While the lawsuit raises familiar arguments against debt relief, the Save plan operates under a different legal authority compared to the previously rejected forgiveness program.

Income-Driven Repayment Plans

The Save plan, which adjusts monthly payments based on income and family size, is an updated version of the Revised Pay as You Earn plan. All income-driven plans promise to forgive remaining balances after 20 to 25 years of payments.

Debt Relief Debate

Conservatives like Kobach argue that broad debt relief is unjust to taxpayers who did not attend college or saved to fund their education. They believe it is unfair to ask them to cover the student loans of those who accumulated significant debt.

Previous Legal Challenges

Kansas, along with five other states, sued the Biden administration in 2022 to block broad debt cancellation. The Supreme Court ruled against that program, citing the president’s lack of authority to implement such policy without congressional approval.

Support and Opposition

The White House recently promoted the Save plan through a day of action. The program has garnered over 7.7 million borrowers and aims to save the average borrower $1,000 annually by reducing the income used to calculate monthly payments.

Read More of this Story at – 2024-03-29 04:27:00

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