The Biden administration is facing lawsuits from two groups of Republican-led states over plans to reduce student loan debt. The lawsuits are in response to the president’s Saving on a Valuable Education (SAVE) plan, which has already cancelled federal student loan debts for 150,000 borrowers and enrolled over seven million debt holders. The states involved in the lawsuits claim that Biden and the Education Department do not have the authority to implement new repayment plans without the backing of Congress.
The first lawsuit was filed by Kansas attorney general Kris Kobach, supported by Alabama, Alaska, Idaho, Iowa, Louisiana, Montana, Nebraska, South Carolina, Texas, and Utah. The lawsuit argues that Biden and the Education Department are turning loans into grants without congressional appropriation. The second lawsuit was filed by Missouri attorney general Andrew Bailey, along with Arkansas, Florida, Georgia, North Dakota, Ohio, and Oklahoma. This lawsuit also challenges the authority of Biden’s plans and raises concerns about a student loan contractor in Missouri facing revenue loss.
Both lawsuits accuse Biden of bypassing Congress to implement costly and controversial policies, and Missouri was previously involved in a lawsuit that thwarted Biden’s previous student debt forgiveness plans. The Biden administration has defended its actions, stating that it will continue to provide support and relief to borrowers despite legal challenges. Bailey, a combat veteran, views the redistribution of debt as unconstitutional and plans to use legal tools to prevent Missourians from bearing the weight of other people’s debt.
Biden’s student loan debt relief plans were adapted after the Supreme Court’s decision on his original plan in June 2023. He expressed a commitment to delivering relief to borrowers quickly following the court’s ruling. The lawsuits represent a broader political and legal battle over the authority of the executive branch to address student loan debt without congressional approval. Republicans are pushing back against what they see as overreach by the Biden administration, while the administration is determined to provide relief to student loan borrowers.
Overall, the lawsuits highlight the ongoing debate surrounding student loan debt relief in the United States. The Biden administration’s efforts to address the issue have sparked legal challenges from Republican-led states, raising questions about the division of powers between the executive branch and Congress. The outcome of these lawsuits could have significant implications for the future of student loan debt relief initiatives and the broader political landscape surrounding financial assistance for higher education.
