Eleven Republican-led states have initiated a Legal challenge against President Biden’s new student loan repayment Program, alleging similarities to a previously invalidated debt relief initiative. Led by Kansas Attorney General Kris Kobach, the lawsuit contends that Biden’s Saving on a Valuable Education (Save) program exceeds his constitutional authority and mirrors a past forgiveness plan that the Supreme Court struck down last year.

Allegations and Legal Basis

The lawsuit, spearheaded by Kansas AG Kris Kobach, asserts that President Biden’s Save program constitutes executive overreach and draws parallels to a previously rejected debt relief initiative.

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Description of the Save Program

President Biden’s Save program, launched in October, aims to provide reduced monthly payments and an accelerated path to loan cancellation for millions of borrowers. While it has already relieved the debts of over 150,000 participants who borrowed under $12,000 and made payments for a decade, its projected cost varies significantly. The Biden administration estimates the program to cost $156 billion over a decade, whereas the Congressional Budget Office predicts a higher figure at $230 billion.

Legal and Administrative Responses

Kansas AG Kobach criticized the Save program, accusing the president of pushing forward despite past legal setbacks. The Education Department refrained from commenting on the lawsuit but reiterated its commitment to enhancing the student loan system and offering relief to borrowers.

Legal Grounds and Previous Challenges

The lawsuit draws upon arguments from previous legal battles against broad-based debt relief. Unlike the failed plan that relied on a 9/11-era law, the Save program derives its authority from the Higher Education Act, presenting a different legal foundation.

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Program Mechanics and Conservative Criticism

The Save program, an adaptation of the existing Revised Pay as You Earn (Repaye) plan, ties monthly payments to income and family size. However, conservatives like Kobach argue that widespread debt relief unfairly burdens taxpayers who did not attend college or save for their education.

Legal Landscape and Political Response

The lawsuit follows the Supreme Court’s rejection of a similar debt cancellation program last year, highlighting the ongoing legal and political battles surrounding student loan relief initiatives. Missouri Attorney General Andrew Bailey expressed support for Kobach’s lawsuit and hinted at filing a related one.

Administration’s Perspective

Despite facing legal challenges, the Biden administration continues to advocate for the Save program, emphasizing its potential to alleviate the financial burden for millions of borrowers by reducing their annual payments.

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