WASHINGTON (NEXTSTAR) – Millions of Americans could see their student loan payments reduced under the Biden administration’s ‘savings’ plan. But now Republican states are suing to stop it.
This week the Biden administration launched a ‘Day of Action’ focused on promoting their ‘SAVE’ student loan program.
“I think the ‘retention’ program has generational implications,” said Education Secretary Miguel Cardona.
The plan lowers monthly payments based on income, with some people paying as little as $0. Also, for some borrowers it cancels the loan completely within ten years.
“We are being as aggressive as possible. We want as many students, as many borrowers, to get their loan relief as quickly as possible,” Cardona said.
Already, the Biden administration says about 7.7 million people are enrolled in ‘preservation’ plans. Although Cardona says that means millions more are missing.
“We need more people to sign up. We are happy that we have 7.7 (million) but we want to double that number,” Cardona said.
But that plan caught fire. This week 11 Republican attorneys general launched a lawsuit to try to stop the ‘conservation’ plan.
Kansas Attorney General Kris Kobach called the plan a blatant attempt to defy the Supreme Court. Last summer, the court struck down the president’s first debt forgiveness plan.
“The law simply does not allow President Biden to do what he wants to do,” Kobach said. “Biden Student Loan Forgiveness Plan Version 2.0 Is Just as Illegal as the First, It’s Deeply Unfair.”
“The Biden-Harris administration will not stop fighting to provide aid and relief to borrowers across the country — no matter how many times Republican elected officials try to stop us,” the Education Department said in a statement.
“We look forward to seeing the president’s attorneys in court,” Kobach said.
The case will take months to work its way through the courts.
