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Missouri Attorney General Andrew Bailey, who led the charge, announced the victory on social media, saying, “JUST IN: The Court granted our emergency motion to BLOCK Joe Biden’s entire illegal student loan plan, which would have saddled working Americans with half-a-trillion dollars in Ivy League debt. HUGE win for every American who still believes in paying their own way.”
A spokesperson for the Department of Education responded to the decision, stating that they are currently assessing the ruling and will continue to “aggressively defend the SAVE Plan.”
This legal challenge is part of a broader effort by conservative states to thwart the Biden administration’s attempts at student loan forgiveness. In April, a coalition of 11 Republican attorneys general filed a lawsuit in the U.S. District Court for the District of Kansas, arguing that the new plan was unlawful and exceeded the administration’s authority.
The lawsuit, which names President Biden, the Department of Education, and Secretary of Education Miguel Cardona as defendants, claims the plan is an illegal attempt to bypass Congress. “A coalition of States sues Defendant Biden, as well as co-defendants the Department of Education and Secretary of Education Miguel Cardona, to stop a second attempt to avoid Congress and pass an illegal student debt forgiveness,” the lawsuit asserts.
In the summer of 2023, the Supreme Court blocked President Biden’s initial plan to cancel $430 billion in student loan debt for approximately 43 million Americans, citing concerns over the financial burden on taxpayers. Despite this setback, President Biden quickly introduced a revised student loan forgiveness scheme, the SAVE Plan, which offers income-driven repayment options and forgives a portion of student debt based on income and family size.
The regulations for the SAVE Plan are scheduled to take full effect on July 1, 2024. However, the Biden administration had planned to accelerate some benefits, having already forgiven $1.2 billion in student loans for nearly 153,000 borrowers enrolled in the program.
Kansas Attorney General Kris Kobach has been vocal in his opposition to the plan, stating, “President Biden’s new student loan forgiveness plan is slightly smaller than the old one, at least for now. But it’s just as illegal.”
Brutal “Pocket Weapon” Stops Hearts (discounted for next 78)
Missouri Attorney General Andrew Bailey has expressed similar sentiments, praising the multi-state coalition’s efforts to challenge the administration’s plan. “I’m extremely pleased to see Kansas is leading a multi-state coalition in challenging President Biden’s latest attempt to unlawfully transfer hundreds of thousands of dollars in Ivy League debt onto working Missouri families. I’m pleased to share that my office is also leading a multi-state coalition and will be filing suit in Missouri in the coming days. Between our two coalitions of states, we will get this matter in front of a judge even more quickly to deliver a win for the American people. The Supreme Court sided with Missouri on this matter the first time. I look forward to bringing home yet another win for the Constitution and the rule of law,” he said.
As the legal battle over student loan forgiveness continues, the future of the SAVE Plan remains uncertain. For now, the court’s decision marks a significant setback for the Biden administration’s efforts to provide financial relief to millions of borrowers, highlighting the ongoing debate over the balance of power between the executive branch and the judiciary.
