In a lawsuit filed Friday in Michigan, the groups argue that the administration overstepped its power when it announced the forgiveness in July, just weeks after the Supreme Court struck down a broader cancellation plan pushed by President Joe Biden.The Supreme Court struck down President Biden's student loan forgiveness plan on Friday, a move that many legal and economic experts expected. Peter C.
The Education Department called the suit "a desperate attempt from right wing special interests to keep hundreds of thousands of borrowers in debt." The new action was announced as a "one-time adjustment" that would count certain periods of past nonpayment as if borrowers had been making payments during that time. It moved 804,000 borrowers across the 20- or 25-year mark needed for cancellation, and it moved millions of others closer to that threshold.
Under the one-time fix, past periods in forbearance were also counted as progress toward Public Service Loan Forgiveness, a program that offers cancellation after 10 years of payments while working in a government or nonprofit job.was illegal, the lawsuit says, because it wasn’t authorized by Congress and didn’t go through a federal rulemaking process that invites public feedback.
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Conservative group files lawsuit to block student-debt relief for 800K borrowersA conservative group filed a lawsuit to block $39 billion in debt relief for 800,000 borrowers on income-driven repayment plans
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