Nebraska, five other states sue Biden over student loan forgiveness
LINCOLN, Neb. (KLKN) – Nebraska and five other Republican-led states have filed a legal challenge to President Joe Biden’s student loan forgiveness plan.
The challenge was filed in a Missouri federal court on Thursday. Nebraska is joined by Arkansas, Iowa, Kansas, Missouri and South Carolina in the lawsuit.
In August, Biden announced that he would eliminate $10,000 in federal student loan debt for borrowers with incomes below $125,000 a year.
The six-state coalition is asking the court to issue an immediate temporary restraining order, which would pause the program.
The group believes that the Biden administration is asserting “highly consequential power beyond what Congress could reasonably be understood to have granted.”
In a press release from the Nebraska Attorney General’s Office, the coalition said the program is “unwise and inherently unfair” and also an example of unlawful regulatory action.
Since student loan payments have been paused since March 2020, no borrower would be disadvantaged by a pause in Biden’s program, the group said.
Earlier in September, Gov. Pete Ricketts and 21 other governors penned a letter to Biden opposing his student loan program.
The governors said the program would “negatively” impact Americans.