A group of 23 attorneys general from states including Missouri and Kansas has challenged the Biden administration’s Department of Education (DOE) over its latest attempt to use taxpayer money to pay off student loan debt. On October 31, the DOE announced a proposed rule that aims to forgive loans for borrowers facing hardship, despite a Supreme Court ruling stating it does not have that authority. This proposal involves the William D. Ford Federal Direct Loan Program and other loan programs.
The attorneys general wrote to Education Secretary Miguel Cardona, pointing out that this is the fourth attempt to shift the burden of student loans to taxpayers. They highlighted that high-profile individuals, including the Supreme Court and President Biden, have recognized the DOE's lack of authority to forgive debt, except in specific instances outlined by Congress. The AGs noted previous attempts to provide broad loan forgiveness that were blocked by courts, which would have cost taxpayers around $430 billion.
The DOE's initial effort was through the HEROES Act, but the Supreme Court ruled it lacked sufficient authority. After this, the DOE proposed a new income-driven repayment plan that could lead to widespread debt cancellation, which also faced legal challenges. The Eighth Circuit Court upheld an injunction against this plan.
The latest rules allow Cardona to waive debts and create new waivers, but these actions have continued to face legal opposition. The attorneys general argue that these efforts disregard the electorate's preference for a change in administration and demand that Cardona withdraw the rule so that the incoming administration can determine the future actions regarding student loans. Florida Attorney General Ashley Moody condemned the president’s actions as hypocritical.
https://www.thecentersquare.com/national/article_4dec484a-b352-11ef-91eb-73f6359a3e8c.html
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