Republican states file lawsuit challenging Biden's student loan repayment plan
A group of Republican-led states is suing the Biden administration to block a new student loan repayment plan that provides a faster path to cancellation and lower monthly payments for millions of borrowers
TOPEKA, Kan. (AP) — A group of Republican-led states is suing the Biden administration to block a new student loan repayment plan that provides a faster path to cancellation and lower monthly payments for millions of borrowers.
In a federal lawsuit filed Thursday, 11 states led by Kansas argue that Biden overstepped his authority in creating the SAVE Plan, which was made available to borrowers last year and has already canceled loans for more than 150,000.
It argues that the new plan is no different from Biden's first attempt at student loan cancellation, which the Supreme Court rejected last year. “Last time Defendants tried this the Supreme Court said that this action was illegal. Nothing since then has changed,” according to the lawsuit.
Biden announced the SAVE repayment plan in 2022, alongside a separate plan to cancel up to $20,000 in debt for more than 40 million Americans. The Supreme Court blocked the cancellation plan after Republican states sued, but the court didn’t examine SAVE, which was still being hashed out.
