The third suit of its kind that threatens to derail the program before it was set to take effect in October was filed by a group of six Republican-led states on Thursday.


Six states are trying to block the plan to forgive student loans.

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In federal court in St. Louis, Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina filed a lawsuit against the federal government.

Missouri's Higher Education Loan Authority will lose money because of the plan, according to the complaint.

The post-September-11 HEROES Act allows federal agencies to relieve or erase student loan debt during a war or other military operation or national emergency.

The plan was not remotely tailored to address the effects of the Pandemic and was issued without congressional approval, according to 60 Minutes.

The lawsuit is the latest in a series of attempts to stop the program, following a suit filed by an Indiana attorney with the libertarian nonprofit Pacific Legal Foundation.

Daniel Laschober, a former Oregon Senate candidate, also filed a suit in a federal district court in the state, arguing that the program will increase inflation and raise the interest rate on his mortgage.

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Republican lawmakers are opposed to the measure because they were harmed by it. Ted Cruz said in a recent interview that courts might not give an average taxpayer standing, but that a student who might face raised tuition as a result of the plan, or someone who makes too much to qualify for the relief, could bring a lawsuit. The Indiana lawsuit could be thrown out due to the lack of legal standing of the person who filed it. In an interview with CNN, an attorney with the National Consumer Law Center said she believed Biden had the authority to issue the order. If a case with standing reaches the Supreme Court, Biden's plan would likely be thrown out, according to a professor.

Key Background

The Biden plan includes forgiveness for student loan borrowers who earn less than $125,000 or households making less than $250,000, as well as additional forgiveness for borrowers who received federal Pell grants. The majority of eligible borrowers will need to apply for debt relief, according to the White House. The Covid-era pause on student loan payments is going to be extended by Biden. Republicans have criticized the plan as a burden on taxpayers, while some on the left argue that it doesn't do enough to alleviate the skyrocketing cost of college tuition.

Big Number

$400 billion is a large sum of money. The Congressional Budget Office estimates how much the program will cost. A majority of student loan borrowers will be able to apply for debt cancellation, according to the CBO.


After the lawsuit was filed, the Biden Administration decided to stop the program for borrowers whose loans are owned by private companies because of the risk of lawsuits against the larger program.

Biden's student debt forgiveness plan will cost $400 billion.

The group is trying to block Biden's student debt forgiveness.

A lawsuit is trying to block Biden from giving student loans.