Two conservative think tanks are suing the Biden administration's latest effort to cancel $39 billion in student loans.
The Mackinac Center for Public Policy and libertarian think tank the Cato Institute filed the new lawsuit in Michigan through the New Civil Liberties Alliance.
Think tanks file suit to block Biden administration's plan to cancel $39B in student loanshttps://t.co/orB8fcGbWJ
— FOX Business (@FoxBusiness) August 7, 2023
"The groups accused the administration of overstepping its power in announcing student loan debt relief for 800,000 borrowers worth $39 billion – a plan the Department of Education rolled out shortly after the Supreme Court struck down a broader student loan handout plan pushed by President Biden," Fox Business reported.
"Friday's lawsuit requested for a judge to rule the latest debt forgiveness plan as illegal and to block the Department of Education from carrying it out until the case is decided," it added.
What to know about the latest lawsuit targeting student loan forgiveness https://t.co/9dbG48caOx
— TIME (@TIME) August 7, 2023
"The Administration’s forgiveness efforts are part of the previously announced one-time account adjustment program, which sought to address the 'historical failures in the administration of the Federal student loan program in which qualifying payments made under IDR plans that should have moved borrowers closer to forgiveness were not accounted for,'" Time reported.
"The Administration announced in July that they would begin to notify borrowers if they qualified for forgiveness. Discharges on their loans are set to begin on Aug. 13," it added.
The move follows the Supreme Court's rejection of the Biden administration's previous effort to cancel the student loan debts of millions of Americans without authorization from Congress.
The move was considered an act of executive overreach, with justices ruling against the effort that had served as the basis for much of the president's 2020 campaign.
The new lawsuit may become the battle cry of Biden's 2024 campaign, blaming Republicans for inequality and using the legal case to appeal to younger voters.
The lawsuit will put a hold on the plan for now, with the case soon headed to court to determine the legality of the latest move.