Conservative groups and Republican attorneys general are contesting Biden’s student-debt relief plans in court.
Legal Battles Over President Biden’s Student-Debt Relief Plans
Conservative groups sued to stop President Biden’s plan to relieve student debt by adjusting Education Department policies, according to the report of Business Insider.
Adjustments to income-driven repayment plans and the Public Service Loan Forgiveness program offer borrowers an additional opportunity to evaluate their payments for potential loan forgiveness. However, conservative groups argue that these adjustments may hinder recruitment for loan forgiveness programs like PSLF.
(photo: Reuters)
Challenges Persist Against Income-Driven Repayment Adjustments
The Sixth Circuit dismissed claims of conservative groups on May 17, citing lack of evidence that loan forgiveness adjustments deterred employees. They deemed the claims speculative. Meanwhile, eleven Republican state attorneys general challenge the SAVE plan alleging it simplifies borrowers’ monthly payments.
The Sixth Circuit’s ruling exposes conservative groups claims as lacking evidence unable to prove that adjustments to loan forgiveness affected employee behavior. Conversely, eleven Republican state attorneys general oppose the SAVE income-driven repayment plan arguing it simplifies borrowers’ monthly payments.
