6 GOP-led states are suing Biden over student loan forgiveness


Washington
CNN

Six Republican-led states sued President Joe Biden on Thursday in an attempt to block his student loan forgiveness plan from taking effect.

The lawsuit was filed in federal court in Missouri by attorneys general from Missouri, Arkansas, Kansas, Nebraska and South Carolina, as well as legal representatives from Iowa.

“In addition to being economically unwise and inherently unfair, the Biden administration’s mass debt forgiveness is yet another example in a long line of illegal regulatory actions. No statute allows President Biden to unilaterally release millions of individuals from their obligation to pay loans they voluntarily assumed say,” Nebraska Attorney General Doug Peterson’s office said in a news release.

Earlier this week, a public interest lawyer and borrower also sued the Biden administration over the student loan forgiveness plan, arguing the policy is an abuse of executive power.

Under Biden’s plan, individual borrowers who earned less than $125,000 in either 2020 or 2021, and married couples or heads of households who earned less than $250,000 annually in those years, would see up to $10,000 of their federal student loan debt forgiven.

If an eligible borrower also received a federal Pell grant while enrolled in college, the person is eligible for up to $20,000 in debt forgiveness. Pell Grants are awarded to millions of low-income students each year, based on factors including their family size and income and the costs charged by their college. These borrowers are also more likely to struggle to repay their student loans and end up in default.

The administration is expected to roll out the first wave of student loan forgiveness in October.

This story is breaking and will be updated.

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