Two conservative groups are asking a federal court to block the Biden administration's plan to cancel $39 billion in student loans for more than 800,000 borrowers.
WASHINGTON — Two conservative groups are asking a federal court to block the Biden administration's planIn 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 CourtThe lawsuit asks a judge to rule the cancellation illegal and stop the U.S. Department of Education from carrying it out while the case is decided.
Biden has said he will pursue a different cancellation plan after the Supreme Court decision, and his administration is separately unrolling a more generous repayment plan that opponents call a "backdoor attempt" at cancellation. 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.
The conservative groups say Biden's plan undercuts Public Service Loan Forgiveness. The Mackinac Center and Cato Institute say they employ borrowers who are working toward student loan cancellation through the program. They say Biden's action illegally accelerates progress toward relief, diminishing the benefit for nonprofit employers.
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