(PartiallyPolitics.com) – On Friday, conservative groups filed a complaint in a Michigan federal district court against the U.S. Department of Education over their latest student loan debt forgiveness plan which was introduced following the Supreme Court’s decision to strike down President Biden’s student loan forgiveness plan.
The Mackinac Center for Public Policy and the Cato Institute alleged in the filing that the Biden administration was overstepping their authority through the creation of this plan and asked the judge to block this forgiveness plan until the case could be settled.
The Department of Education stated that the challenge to the plan that the conservatives were ringing forward was just a “desperate attempt” to ensure that thousands of borrowers would continue to be in dept. The department argued that they would not stop and would continue to defend working families.
The new student loan plan was announced on July 14, and it would enable 804,000 borrowers to use income-driven repayment plans. The plan would ultimately forgive around $39 billion in student loan debts.
While these plans have always included student loan forgiveness after 20 or 25 years of payments were made, the administration has claimed that in the past there were many inaccurate payment counts which resulted in borrowers having to pay for additional years before their repayment plan would lead to forgiveness.
The new plan is going to count even certain periods of nonpayment as periods of repayment which would mean that those 804,000 borrowers would now cross the forgiveness plan threshold and have their loans forgiven. The plan would also affect the Public Service Loan Forgiveness program, which allows those in nonprofit positions or government jobs to receive student loan forgiveness after making payments for 10 years.
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