Republican-led states file new lawsuit to block Biden’s student loan forgiveness plans
CNN
A group of seven Republican-led states filed a fresh lawsuit Tuesday, seeking to block a new student loan relief plan that the Biden administration planned to start rolling out this fall.
A group of seven Republican-led states filed a fresh lawsuit Tuesday, seeking to block new student loan forgiveness plans that the Biden administration expected to start rolling out this fall. The lawsuit marks yet another legal challenge to President Joe Biden’s student loan policies and could potentially tie up his latest effort to deliver debt relief before the November election. Currently, Biden’s student loan repayment plan known as SAVE (Saving on a Valuable Education) is blocked while litigation plays out at the 8th US Circuit Court of Appeals. And the president’s sweeping, one-time student loan forgiveness program was knocked down by the Supreme Court last year. At issue in the latest lawsuit is a set of proposals that the Department of Education started drafting soon after the Supreme Court rejected the Biden administration’s program. The new plans are meant to deliver narrower student loan forgiveness that could withstand legal challenges. One of the provisions would cancel accumulated interest for people with federal student loan balances bigger than what they originally borrowed. The full amount of interest would be canceled for borrowers whose annual income is $120,000 or less. Others could receive up to $20,000 in debt relief. About 23 million people would benefit from the interest cancellation under the proposed rule, according to the Department of Education. In an email sent to borrowers in August, the department said it would start delivering this debt relief in the fall.
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