Republican AGs Take Another Bite at the Apple in Challenging Student Loan Cancellations

  • 11 Republican AGs filed a lawsuit against the Biden administration and the Department of Education (ED) alleging that they exceeded executive and agency authority in implementing the SAVE Plan, which provides student loan borrowers with a swifter path to loan cancellation and lower monthly payments and has already resulted in loan cancellation for over 150,000 borrowers.
  • According to the complaint, ED’s decision to amend existing plans through federal regulation exceeds the agency’s authority and violates the Administrative Procedures Act, and such significant changes must instead be made by Congress. The AGs also assert that the SAVE Plan must be struck down just as the Biden administration’s prior loan cancellation efforts were in Biden v. Nebraska, which held that such cancellation exceeded ED’s statutory authority. The lawsuit in Biden v. Nebraska was similarly brought by a coalition of Republican AGs.
  • The AGs seek declaratory and injunctive relief, as well as costs and fees, among other relief. Arkansas AG Tim Griffin and Missouri AG Andrew Bailey announced that they plan on taking similar action.