The states of Iowa, Kansas, Missouri, Nebraska and South Carolina joined Arkansas in filing the lawsuit against the Biden administration, saying the student loan forgiveness is overstepping executive powers.
As the lawsuit was being filed, the administration quietly scaled back eligibility rules for the debt relief.
In the lawsuit, being filed Thursday in a federal court in Missouri, the Republican states argue that Biden’s cancellation plan is “not remotely tailored to address the effects of the pandemic on federal student loan borrowers,” as required by the 2003 federal law that the administration is using as legal justification.
In particular, the suit alleges that Missouri’s loan servicer will lose revenue from loans it owns through the Federal Family Education Loan Program — a program that allowed private banks to issue and manage federally backed student loans until the program was disbanded in 2010. “Republican officials from these six states are standing with special interests, and fighting to stop relief for borrowers buried under mountains of debt,” White House spokesman Abdullah Hasan said Thursday. “The president and his administration are lawfully giving working and middle class families breathing room as they recover from the pandemic and prepare to resume loan payments in January.
Democratic lawmakers battling in tough reelection contests also distanced themselves from the student loan plan, as Republican officials called it an unfair government giveaway for relatively affluent people at the expense of those who didn’t pursue higher education.
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