Biden’s $150 Billion Student Loan Forgiveness Plan Faces Legal Challenge by 11 States

President Biden’s newest student loan forgiveness plan has driven headfirst into a red cement wall. Kansas, alongside 10 other states, are aspiring to challenge the proposal that would dissolve more than $150 billion.

Not the First Time

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The case of  Kansas v. Biden is a second attempt to strike down Biden’s student debt relief efforts. Its predecessor, Biden v. Nebraska, was overruled by the Supreme Court, neutering the administration’s forgiveness proposal that would’ve reduced federal student debt by $430 billion.

A Review of Forgiveness

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Biden’s legal crutch for the case rested heavily on the Higher Education Act of 1965 (HEA) through a generous interpretation of the statutes cited in order to establish debt relief for federal loans.

Skeptical at Best

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It could be argued that HEA Section 455 permits executive power for repayment plans, but critics staunchly agree that such power would be stepping outside the checks-and-balances system in place.

Ripped From the History Books

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Primary concerns center around the interpretation of the law, demanding specificity from Congressional spearheads. This counterpoint was the exact rebuttal used in the previous Biden v. Nebraska case.

More Than Meets the Eye

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While the current proposal aims to resolve $156 billion in debt, the actual amount might be higher due to factors involving the strike down of the plan’s predecessor, as well as changes in eligibility.

HEA Revival

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Patterns from the previous Biden v. Nebraska have been traced through the current lawsuit, with concerned parties claiming that state-funded agencies servicing federal student loans could potentially go under in the absence of loans.


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One such agency threatened with extinction is MOHELA, Louisiana’s primary student loan organization. If the proposal passes, MOHELA employees would endure lower wages.

Arguments All Over the Place

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Plaintiff states in the court case have produced an array of reasons to deny the proposal. Some, like Louisiana, argue it will decrease public servants’ income. Other states are employing differing legal strategies, to varying strengths.

Out of Pocket?

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Cries to stop the loan forgiveness plan in court mainly originate from concerned Republicans. Many are seeking to prevent an overreach of executive power and reinforce congressional authority regarding fiscal matters.

Who’s In Charge?

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Kris Kobach, the Kansas Attorney General, is a key player in the case. However, his controversial reputation raises doubts about the effectiveness of his involvement.

Digress to Congress

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Regardless of Kobach’s history, the lawsuit seems to hold legitimate legal questions surrounding the extension of Biden’s influence.

The middle ground would be having the plan backed by congressional approval.

A Struggle for Power

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The overarching takeaway from the lawsuit is over how to balance presidential power, fiscal responsibility, and the accurate application of statutory provisions regarding federal student loan forgiveness.

A Clarifying Case

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As Biden v. Kansas continues to unfold, scrutiny of the suing states’ counterpoints will offer insight into future interpretations of student loan forgiveness, specifically the relationship between borrowers and federal relief.

Asking the Experts

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Both legal strategists and political thinkers note how monumental the court’s ruling could be. Conservatives hope it will limit orders from the Oval Office, while progressives are looking for a looser interpretation to resolve the hefty financial burden.

Lose the Forest for the Trees

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While the lawsuit is quite politically charged, the legal and constitutional undertones take precedence. Cases like this remodel executive authority, which could have lasting effects that would be difficult to reverse.

Thinking Long Term

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By changing how the executive branch can ignite immediate action, balances for the other two branches could be skewed.

This leaning could lead to future presidents being at the mercy of politically controlled courts and an overbearing Congress.

Loans Still Unforgiven

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Regardless of the turnout for this case, many individuals have spoken about their desire for student loan forgiveness. It is important for the court to consider both the political tiding and the public’s desires.

The post Biden’s $150 Billion Student Loan Forgiveness Plan Faces Legal Challenge by 11 States first appeared on Wealthy Living.

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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.