Political Lawsuit: Republican States Preventing Student Loan Relief

Ready to have your student loans discharged? Me too, but as Anquette, the R&B group from Miami, once sang, “Hold on, wait a minute (let us put some boom in it).” As the Biden Administration continues with the SAVE Plan and student loan forgiveness, Republicans have a different plan in mind.

Key Points:

• The Supreme Court has previously blocked the Biden administration’s initial plan for student loan forgiveness.
• Biden’s SAVE Plan has provided approximately $169 billion in student loan forgiveness for over 4.8 million borrowers.
• A new plan expected next month could provide debt relief for 25 to 30 million more borrowers.
• Public Service Loan Forgiveness (PSLF) was created under the College Cost Reduction and Access Act of 2007 and signed into law by President George W. Bush.
• The new lawsuit headed by Republican-led states, includes Missouri, Arkansas, Iowa, Kansas, Nebraska, and South Carolina.
• It’s politics as usual.

The Supreme Court

The Chaos Court, I mean the Supreme Court, blocked the Biden administration’s plan to grant student loan forgiveness. But, the Biden administration was coming back with Plan B, or C, or D next month. But…

• Supreme Court Chaos: Impact on Student Loans and Biden’s SAVE Plan

Student Loan Forgiveness Updates

With no help from the Republicans, the Biden administration has approved approximately $169 billion in student loan forgiveness for 4.8 million plus borrowers. The new plan, which is being proposed, could affect between 25 to 30 million more borrowers.

Here’s one tidbit of information: most people don’t realize the Public Service Loan Forgiveness Plan (PSLF) was created under the College Cost Reduction and Access Act of 2007. It was signed into law by, wait for it…

President George W. Bush, a Republican.

Republican Led States are at it Again with Student Loan Forgiveness

Another lawsuit, this time in the Southern District of Georgia, has been filed to prevent Biden’s administration from trying student loan debt relief under the Higher Education Act of 1965.

Which states joined the party this time? Missouri, Arkansas, Iowa, Kansas, Nebraska and South Carolina. I see Alaska hasn’t joined the list this time around. Maybe the powers that be read the link below and realized their hypocrisy.

• Find Out Which States Oppose Student Loan Forgiveness

This new lawsuit by Republican-led states prevents student loan borrowers from having their debt discharged if they have unpaid interest or have been in repayment for more than twenty years. It also applies to borrowers whose student loan debt needs to be lowered, compared to numerous factors such as post-graduation earnings.

Law School 101

There is a term in the law known as “ripe.” You know how you won’t eat a fruit that isn’t ripe yet? That same concept applies to lawsuits. You can’t file a lawsuit until it’s ready or “ripe.” For example, you can’t file for divorce until you are actually married. Simply put, the cart can’t go before the horse.

So what gives now? Well, the lawsuit is based on the Department of Education announcing it would implement a new plan in October. But look at the date. Unless Republicans have a time machine, we are in September. Ripe?

It’s more than clear that this is strictly political. I’ve argued in prior posts like the ones referred to in this post that these are not economic arguments. As an exception, I would say that Missouri has a legal leg to stand on because student loan servicer MOHELA is based in Missouri. The other “Johnny come lately” states are just there for political show.

This is where I remind you to vote. By the way, if you happen to have student loans and oppose student loan forgiveness, you should have received an email already from the Department of Education to “opt out” of relief, so make sure to do so. By the way, that was sarcasm.

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Updated on April 27, 2025.