Seven states, led by Missouri Republican Attorney General Andrew Bailey, have filed a lawsuit against President Joe Biden, Education Secretary Miguel Cardona, and the U.S. Department of Education over Biden’s SAVE income-driven repayment student loan initiative.
The lawsuit, joined by Arkansas, Florida, Georgia, North Dakota, Ohio, and Oklahoma, challenges Biden’s attempt to implement a plan that would cancel at least some debt for over 30 million Americans. This initiative has been in development for months after the Supreme Court rejected Biden’s initial mass cancellation proposal.
Joe Biden (Credits: The Hill)
Biden’s first plan aimed to erase $10,000 in debt for borrowers with annual incomes of up to $125,000 and an additional $10,000 for those receiving federal Pell grants for low-income students. However, the Supreme Court ruled against this plan, stating that Biden had exceeded his authority.
The new plan seeks to utilize a different legal justification under the Higher Education Act, which permits the education secretary to waive student loan debt in specific cases. The Education Department is undergoing a federal rulemaking process to clarify how this authority can be invoked.
Joe Biden (Credits: Bryan Times)
In response to the lawsuit, the White House stated that President Biden has been committed to reforming the student loan system to ensure that higher education serves as a pathway to the middle class. However, Bailey argues that Biden’s actions are an attempt to circumvent the Constitution to advance his political agenda.
Bailey’s lawsuit contends that Biden’s efforts to alter the student loan system unilaterally infringe upon the Constitution and would burden specific individuals to benefit others.
The states involved assert that the Supreme Court previously rejected a similar attempt by Biden and that the new plan is fundamentally the same. This legal challenge adds to the ongoing debate surrounding student loan debt and the extent of executive authority in addressing this issue.
