Six GOP-led states are suing the Biden administration over its plan to cancel at least $10,000 in student loan debt for tens of millions of Americans.
Six Republican-led states are suing theover its proposal to forgive student loan debt for tens of millions of Americans.
But the administration this week quietly scaled back eligibility requirements for the debt relief. Now, borrowers with loans guaranteed by the federal government but held by private lenders are ineligible for debt cancelation, according to the Education Department. The states highlight that Biden said in an interview last month that the COVID-19 pandemic is over, but is continuing to use the ongoing health emergency to justify the debt relief.
The lawsuit said Missouri's loan servicer is facing a number of"ongoing financial harms" due to the student loan forgiveness. Other states that joined the lawsuit argue that the president's debt relief proposal will ultimately disrupt revenue to state coffers."Republican officials from these six states are standing with special interests, and fighting to stop relief for borrowers buried under mountains of debt," White House spokesman Abdullah Hasan said Thursday.
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Six GOP-led states suing Biden administration over student loan forgivenessSix GOP-led states are suing the Biden administration to try and halt its plan to forgive student loan debt.
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GOP states sue Biden administration over student loan planIt’s at least the second legal challenge this week to the sweeping proposal laid out by President Joe Biden in late August, when he said his administration would cancel up to $20,000 in education debt for huge numbers of borrowers.
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