FILE - Graduates at the University of Toledo commencement ceremony in Toledo, Ohio, May 5, 2018. Another 78,000 Americans are getting their federal student loans canceled through a program that helps teachers, nurses, firefighters and other public servants, the Biden administration announced Thursday.
The challenge was filed in federal court in Topeka, Kansas, by Kansas Attorney General Kris Kobach. It asks a judge to halt the plan immediately. Along with Kansas, the suit is backed by Alabama, Alaska, Idaho, Iowa, Louisiana, Montana, Nebraska, South Carolina, Texas and Utah. The new plan offers more generous terms than ever, offering to reduce monthly payments for more borrowers and canceling loans in as little as 10 years. Unlike other plans, it prevents interest from snowballing as long as borrowers make their monthly payments.
Instead of creating a new plan from scratch, the Education Department amended existing plans through federal regulation. Supporters saw it as a legal maneuver that put the plan on firmer grounding, anticipating a challenge from Republicans.