Lawsuit Looks to Block Biden's Revised Student Loan Cancellation Plan

Lawsuit Looks to Block Biden's Revised Student Loan Cancellation Plan

Lawsuit Looks to Block Biden's Revised, Student Loan Cancellation Plan.

On August 4, two conservative groups in Michigan filed a lawsuit asking a federal court to block the Biden administration's plan to cancel $39 billion in student loans.

'Newsweek' reports that President Joe Biden announced a plan on July 14 to cancel student loans for 804,000 borrowers beginning on August 13.

In August of 2022, the Biden administration had announced a more ambitious student relief plan that would have cost approximately $400 billion.

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'Newsweek' reports that the original plan would have given the Biden administration power to revise the student loan program amid a national emergency.

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In July of this year, that plan was struck down by the Supreme Court, as a majority of justices ruled that Biden lacked the authority to act without the approval of Congress.

In July of this year, that plan was struck down by the Supreme Court, as a majority of justices ruled that Biden lacked the authority to act without the approval of Congress.

The administration's new plan has also been met by conservative resistance, including the August 4 lawsuit which accused the president of overstepping his role.

The lawsuit was filed by the New Civil Liberties Alliance on behalf of the Mackinac Center for Public Policy and the Cato Institute.

'Newsweek' reports that the lawsuit is seeking for the administration's plan to be ruled illegal and block the Education Department from acting until the case is decided.

'Newsweek' reports that the original debt forgiveness program also faced a number of lawsuits, resulting in the plan eventually being blocked by the Supreme Court.