A group of Republican-led states is suing the Biden administration to block a new student loan repayment plan that provides a faster path to cancellation and lower monthly payments for millions of borrowers.
The Education Department declined to comment on the lawsuit but noted that Congress in 1993 gave the department the authority to define the terms of income-driven repayment plans. The challenge was filed electronically in federal court in Kansas by Kansas Attorney General Kris Kobach, who requested that any trial be in Wichita, the state's largest city. The lawsuit asks a judge to halt the plan immediately. Along with Kansas, the suit is backed by Alabama, Alaska, Idaho, Iowa, Louisiana, Montana, Nebraska, South Carolina, Texas and Utah.
The plan’s provisions are being phased in this year, and the quicker path to cancellation was originally scheduled to take effect later this summer. But the Biden administration accelerated that benefit and started canceling loans for some borrowers in February.
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