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Six states led by Republican governors sued to overturn President Joe Biden’s plan to cancel up to $20,000 dollars in student debt for millions of borrowers.
Conservatives filed legal challenges to one of the administration’s emblematic economic policy initiatives.
The new demand , filed in federal court in Missouri, comes two days after a conservative Indiana attorney filed a separate lawsuit against the administration seeking to reverse the policy.
The lawsuit aims to stop Biden’s student loan forgiveness plan
White House policy would cancel up to $20,000 dollars in federal student loan debt for borrowers earning less than $125,000 dollars per year, or less than $250,000 dollars for married couples, or up to $20,000 for those who received federal Pell Grants.
The Biden administration has insisted that it has the legal authority to cancel student debt, citing a law of 2003 that gives the executive branch broad authority to review student debt programs student loans.
Missouri Republican Attorney General Eric Schmitt, who is leading the lawsuit, said in a statement that the policy will worsen inflation for Americans who do not benefit from student debt cancellation. Arkansas, Iowa, Kansas, Nebraska and South Carolina joined Missouri in filing the complaint. Schmitt is also the Republican candidate for the United States Senate seat from Missouri in this fall’s election.
“No statute allows that President Biden unilaterally release millions of people from their obligation to repay the loans they voluntarily assumed,” the lawsuit says.
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