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Republicans Sue Biden Over Student Loan Debt Plans

The attempts of the Biden administration to reduce student loan debt across the United States are being challenged by Republican-led states, leading to legal battles.

Two separate lawsuits have been filed against the Saving on a Valuable Education (SAVE) plan, which was implemented by President Biden and the Education Department to alleviate the burden of federal student loan debts.

Biden’s actions in implementing new repayment plans without congressional approval are being contested by 18 states, who argue about the legality of the initiative.

Over 7,000,000 debt holders have enrolled in the program, while SAVE has already relieved 150,000 borrowers by canceling federal student loan debts.

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Credits: DepositPhotos – KYIV, UKRAINE – MARCH 9, 2024 US Department of Education seal on United States of America flag close up — Photo by Mehaniq

The lawsuits claim that Biden and the Education Department do not have the power to create new repayment plans without the approval of Congress, as granted in 1993.

Kansas Attorney General Kris Kobach filed the first lawsuit in March, accusing Biden and the Education Department of effectively turning loans into grants without congressional appropriation.

The Education Department has reaffirmed the administration’s commitment to providing support and relief to borrowers despite legal challenges, without commenting directly on the case.

Missouri Attorney General Andrew Bailey is leading the second lawsuit, which has been filed in collaboration with Arkansas, Florida, Georgia, North Dakota, Ohio, and Oklahoma. 

It echoes similar arguments against Biden’s plans and raises concerns about potential financial losses for student loan contractors, such as Missouri-based MOHELA.

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Credits: DepositPhotos

Missouri has played a crucial role in previous legal challenges against Biden’s student debt forgiveness plans and is once again at the forefront of the legal battle.

Biden’s current debt relief initiatives are a revised version of his previous plans, following a Supreme Court ruling in June 2023 that thwarted his original proposals.

Despite legal challenges, Biden has reiterated his commitment to finding alternative paths to deliver student debt relief, emphasizing the administration’s determination to assist borrowers in managing their debts.

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