Eleven Republican-led states have initiated a legal challenge against President Biden’s new student loan repayment program, alleging similarities to a previously invalidated debt relief initiative. Led by Kansas Attorney General Kris Kobach, the lawsuit contends that Biden’s Saving on a Valuable Education (Save) program exceeds his constitutional authority and mirrors a past forgiveness plan that the Supreme Court struck down last year.

Allegations and Legal Basis

The lawsuit, spearheaded by Kansas AG Kris Kobach, asserts that President Biden’s Save program constitutes executive overreach and draws parallels to a previously rejected debt relief initiative.

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Description of the Save Program

President Biden’s Save program, launched in October, aims to provide reduced monthly payments and an accelerated path to loan cancellation for millions of borrowers. While it has already relieved the debts of over 150,000 participants who borrowed under $12,000 and made payments for a decade, its projected cost varies significantly. The Biden administration estimates the program to cost $156 billion over a decade, whereas the Congressional Budget Office predicts a higher figure at $230 billion.

Legal and Administrative Responses

Kansas AG Kobach criticized the Save program, accusing the president of pushing forward despite past legal setbacks. The Education Department refrained from commenting on the lawsuit but reiterated its commitment to enhancing the student loan system and offering relief to borrowers.

Legal Grounds and Previous Challenges

The lawsuit draws upon arguments from previous legal battles against broad-based debt relief. Unlike the failed plan that relied on a 9/11-era law, the Save program derives its authority from the Higher Education Act, presenting a different legal foundation.

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Program Mechanics and Conservative Criticism

The Save program, an adaptation of the existing Revised Pay as You Earn (Repaye) plan, ties monthly payments to income and family size. However, conservatives like Kobach argue that widespread debt relief unfairly burdens taxpayers who did not attend college or save for their education.

Legal Landscape and Political Response

The lawsuit follows the Supreme Court’s rejection of a similar debt cancellation program last year, highlighting the ongoing legal and political battles surrounding student loan relief initiatives. Missouri Attorney General Andrew Bailey expressed support for Kobach’s lawsuit and hinted at filing a related one.

Administration’s Perspective

Despite facing legal challenges, the Biden administration continues to advocate for the Save program, emphasizing its potential to alleviate the financial burden for millions of borrowers by reducing their annual payments.

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President Biden recently declared another round of student loan forgiveness, totaling $1.2 billion, bringing the cumulative forgiven amount to $138 billion. However, these incremental actions have not garnered significant acclaim.

Biden’s Strategic Approach

After the Supreme Court invalidated President Biden’s extensive plan to cancel billions in student loan debt, questions arose regarding how he would fulfill his pledge to alleviate the burden on millions of Americans. In response, Biden has adopted a gradual, step-by-step strategy.

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Incremental Progress

President Biden’s recent announcement wiped out $1.2 billion in student loan debt, extending relief to 150,000 borrowers enrolled in the SAVE repayment program. This initiative primarily targets borrowers with balances of $12,000 or less who have maintained payments for at least a decade. While a departure from his initial ambitious proposal, which aimed to cancel up to $400 billion in debt for around 43 million borrowers, Biden’s actions have still made notable strides.

Mixed Reactions

Critics and supporters alike acknowledge that while Biden’s efforts fall short of his initial promise, they represent significant progress compared to previous administrations. Despite periodic announcements of limited debt cancellations over the past year, Biden’s recent personal engagement with the issue underscores a White House endeavor to garner more recognition for these initiatives.

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Challenges and Expectations

However, the administration faces challenges in managing the high expectations set by its expansive proposals. Despite substantial policy achievements in various domains, many voters remain unaware or unimpressed with Biden’s accomplishments. This discrepancy between expectations and outcomes poses a considerable obstacle for the administration.

Future Prospects

Despite the hurdles, Biden’s aides view student debt cancellation as a potential avenue for improving his approval ratings and enhancing the lives of Americans. The administration’s workaround approach, though commendable, has yet to fully satisfy the expectations of millions who anticipated debt relief. The complex rollout of the Free Application for Federal Student Aid (FAFSA) further complicates efforts to demonstrate the impact of these relief measures.

Conclusion

While President Biden’s incremental student debt relief initiatives signal progress, they also highlight the challenges of managing expectations and navigating bureaucratic hurdles. Despite criticism and frustration, these efforts represent a significant departure from past practices, underscoring the administration’s commitment to addressing the issue of student loan debt in America.

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Carolyn Lamm, ABA President, said last week that the association will keep pushing by building support for student loan relief for recent graduates.

The ABA has been lobbying the Obama administration in response to the growing debt of recent graduates who have been unable to find jobs because of the recession.

Lamm says that she and other ABA officials have met with aides on Capitol Hill, at the U.S. Department of Education and in the White House to press their case, so far without success. She goes on to say that while they are interested in education and in helping, they have yet to find a solution.

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