The Biden Administration is being sued in federal court by six republican-led states in an effort to halt the cancellation of millions of student loan debts.
In August, Biden announced the cancellation of millions of peoples’ school loans. He stated that Pell Grant recipients would have $10,000 refunded to them.
The Biden-Harris Administration’s student debt relief plan will give working and middle-class Americans more breathing room.
— The White House (@WhiteHouse) September 29, 2022
Iowa, Kansas, Missouri, Nebraska, South Carolina, and Arkansas contend that the Biden Administration overstepped its bounds in a new lawsuit filed in a federal Missouri court.
The cancellation policy is “not remotely designed to address the consequences of the pandemic on federal student loan debtors,” according to the lawsuit that was filed on Thursday.
Leslie Rutledge, the attorney general of Arkansas, speaking on behalf of the group, claims that it is “unjust” to make others responsible for the debt of “those who choose to go to college.”
Additionally, according to Rutledge, Biden is “required” by law to collect the debt and is unable to do otherwise.
Millions of borrowers will be eligible for relief under the plan since it will also cut monthly student loan payments in half.
When he offered debt relief for debtors, Biden made it clear he was following his campaign promise.
“In keeping with my campaign promise, my Administration is announcing a plan to give working and middle-class families breathing room as they prepare to resume federal student loan payments in January 2023,” Biden tweeted while announcing the plan.”
Additionally, his plan will fix the Public Service Loan Forgiveness program, cut monthly student loan payments by 50%, and simplify the present student loan system for both current and future students.