A coalition of Republican-led states has launched a fresh legal battle against President Joe Biden’s latest attempt to alleviate student debt. On Tuesday, seven states filed a lawsuit challenging the administration’s most recent debt forgiveness initiative, just days after the Supreme Court shut down a previous attempt.
This new suit, lodged in a federal court in Brunswick, Georgia, targets a proposed rule by the U.S. Department of Education that could cancel billions of dollars in federal student loans. The Education Department has been accused of instructing loan servicers to begin canceling debts even before the rule is finalized, potentially wiping out $73 billion in loans overnight. The states argue that the Department lacks the authority to implement such a sweeping debt forgiveness program.
Missouri Attorney General Andrew Bailey, one of the key figures in the lawsuit, expressed confidence in their legal challenge, stating, “We successfully halted their first two illegal student loan cancellation schemes; I have no doubt we will secure yet another win to block the third one.”
An Education Department spokesperson, while declining to comment on the ongoing litigation, reiterated the administration’s commitment to supporting borrowers struggling with repayment. The Biden administration has already approved $169 billion in debt relief for nearly 4.8 million borrowers.
This lawsuit represents the latest chapter in the ongoing conflict over Biden’s efforts to fulfill his campaign promise of easing the burden of student loans for millions of Americans. The administration’s previous $430 billion plan was struck down by the Supreme Court in June 2023, prompting the development of a new approach, known as the Saving on a Valuable Education (SAVE) plan. However, that initiative also faces legal hurdles, with a federal appeals court blocking its implementation pending further litigation.
The new debt relief plan hinges on a provision in the Higher Education Act, which prominent Democrats like Senate Majority Leader Chuck Schumer and Senator Elizabeth Warren have long argued gives the administration the authority to cancel student debt. Despite these efforts, the legal battle over student loan forgiveness is far from over, with Republican states determined to challenge Biden’s initiatives at every turn.
