Seven Republican led states have sued the U.S. Department of Education to block the Biden administration from carrying out its sweeping new student loan forgiveness plan.
In the lawsuit, Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio all accuse the Education Department of illegally trying to forgive hundreds of billions of dollars in federal education debt. The lawsuit also claims the department has allegedly already instructed its loan servicers to begin canceling the eligible loans as early as Sept. 3.
The Biden administration began working on its new student loan forgiveness plan after the Supreme Court blocked its first policy in June 2023. This revised relief plan targets four groups of borrowers, including those who owe more than they originally borrowed and graduates of low value programs. Some 25 million people could benefit.
Opposition to this form of debt forgiveness stems from the fact that it rewards only current debt holders, and does nothing for people who never incurred student debt or people who have paid off student debt.
Do you think the Biden Administration should abide by the Supreme Court ruling and stop forgiving student debt until rules are finalized?