The Biden administration is pulling back on its student debt relief program amid numerous legal challenges, including six new lawsuits filed by Republican-led states. In a reversal from Biden's original sweeping proposal in August to cancel federal student loans up to $20,000, the US Department of Education announced Thursday that it would not forgive debt from borrowers whose student loans are owned by private entities.
In the newest lawsuit filed in federal court in Missouri, Republican attorney generals from Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina requested that the relief program be shut down, arguing it's unconstitutional and that it does "not remotely tailored to address the effects of the pandemic on federal student loan borrowers."
- While the federal student loans tied up with private entities account for just a small percentage of the potentially 42 million Americans affected by the program, there are significant business interests that pose a legal threat to the program.
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