TBA Law Blog


Posted by: Stacey Shrader Joslin on Aug 7, 2023

Two conservative groups are asking a federal court to block the Biden administration’s plan to cancel $39 billion in student loans for more than 800,000 borrowers, the Associated Press reports. In a lawsuit filed Friday, the Mackinac Center for Public Policy and the Cato Institute argue the administration overstepped its power when it announced the forgiveness in July. The program would offer cancellation of debt for borrowers with income-driven repayment plans, which typically offer cancellation after borrowers make 20 or 25 years of payments. The administration says that “past administrative failures” have resulted in inaccurate payment counts, which have set borrowers back on their progress toward forgiveness. Opponents argue that only Congress can authorize debt cancellation programs.