Topeka, Kansas – Eleven Republican-led states, including Kansas, have filed a federal lawsuit challenging President Biden’s new student loan repayment program, known as Save. The states argue that the program, designed to provide debt relief and lower monthly payments for millions of borrowers, exceeds the president’s authority and is a reiteration of a previously rejected forgiveness plan.
Led by Kansas Attorney General Kris Kobach, the lawsuit alleges that Biden’s Save program, which has already erased the balances of over 150,000 borrowers, will cost billions of dollars over the next decade. The states seek to block the Save program, citing concerns over the level of forgiveness and the program’s impact on taxpayers.
The Education Department has defended the Save program, stating that it is part of efforts to fix the student loan system and provide affordable repayment options. The department emphasized that the program aims to support borrowers nationwide, despite opposition from Republican officials.
The lawsuit, supported by attorneys general from several states, challenges the authority underpinning the Save program, which differs from the previous forgiveness plan rejected by the Supreme Court. While conservatives criticize the broad debt relief provided by the program, the Education Department argues that Save aligns with existing income-driven repayment options created under the Higher Education Act in 1993.
The Save program ties monthly payments to income and family size, resembling an amended version of an existing repayment plan. Despite conservative arguments against widespread debt relief, the Biden administration continues to push for support for borrowers through innovative repayment plans.
This lawsuit comes amidst ongoing debates over student loan forgiveness and the government’s role in addressing student debt. As the legal battle unfolds, it remains to be seen how the courts will interpret the authority of the administration to implement student loan repayment programs without congressional approval.