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Biden’s Student Loan Relief Efforts Hit with Another Lawsuit

A coalition of seven Republican-led states has launched a fresh legal challenge against the Biden administration’s student loan forgiveness plans, seeking to block the rollout of new debt relief measures this fall. This lawsuit marks the latest in a series of legal hurdles facing President Joe Biden’s efforts to deliver student loan forgiveness.

The lawsuit targets a set of proposals drafted by the Department of Education after the Supreme Court struck down the administration’s sweeping student loan forgiveness program last year. The new plans aim to provide narrower debt relief, including canceling accumulated interest for borrowers with federal student loan balances exceeding their original loan amount.

Under the proposed rule, borrowers with annual incomes of $120,000 or less would have their interest canceled in full, while others could receive up to $20,000 in debt relief. The Department of Education estimates that approximately 23 million people would benefit from the interest cancellation, with a total cost of $73 billion.

The lawsuit claims that the Department of Education intends to start providing some of the student debt relief as early as this week, violating a statute requiring a 60-day waiting period after publication. Missouri Attorney General Andrew Bailey, leading the lawsuit, expressed confidence in securing another win to block the administration’s student loan forgiveness plans.

Despite the Supreme Court’s rejection of Biden’s sweeping student loan forgiveness program, his administration has still canceled more student loan debt than any other president, primarily through existing programs. Nearly 4.8 million people have seen their federal student debt canceled under Biden, totaling $169 billion.

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