Republican state AG's challenge Biden student loan plan in court

 March 30, 2024

The Supreme Court ruled last year that President Joe Biden's plan to offload more than $400 billion worth of student loan debt onto taxpayers was unconstitutional.

While Biden is pressing ahead with another attempt at bailing out borrowers, a coalition of Republican-led states are fighting him in court. 

Plan ties loan payments to income, allows obligations to be written off

At issue is the Saving on a Valuable Education (SAVE) plan, an income based repayment system under which payments are calculated based on how much a borrower makes rather than the amount he or she owes.

What's more, the program also permits outstanding debt obligations to be written off after a specified period of time has passed.

According to Axios, the lawsuit challenging it was filed in the U.S. District Court for the District of Kansas by attorneys general from Alabama, Alaska, Idaho, Iowa, Louisiana, Montana, Nebraska, South Carolina, Texas and Utah.

The attorney generals point out how the "[l]ast time Defendants tried this the Supreme Court said that this action was illegal."

Administration vows to defend plan

"Nothing since then has changed, other than introducing more legal errors into this Rule's underlying analysis," their suit goes on to contend.

Kansas Republican Attorney General Kris Kobach touted the lawsuit in a post on Facebook, writing, "Aside from the fact that Biden's loan forgiveness plan is unlawful for multiple reasons, it's also wrong."

However, a Department of Education spokesperson responded by defending the SAVE plan in a statement put out on Thursday.

"The Biden-Harris Administration won't stop fighting to provide support and relief to borrowers across the country — no matter how many times Republican elected officials try to stop us," it read.

Former GOP senator says student debt relief is "Robin Hood in reverse"

However, critics of debt relief like former North Carolina Republican Sen. Richard Burr have maintained that it amounts to "Robin Hood in reverse" as "it takes from the poor and gives to the rich."

"The Biden administration’s policies on federal student loans are only making inflation worse, effectively imposing a tax on the poor to benefit the rich or better off," Burr wrote in an op-ed piece for Fox News last year.

"Democrats have touted their student loan schemes as promoting economic equity, but in fact it does the opposite," he complained.

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