(ReliableNews.org) – President Joe Biden released the Saving on a Valuable Education (SAVE) Plan after the Supreme Court blocked his previous student loan debt relief policy. The new plan focused on income-driven repayment (IDR) plans. A group of Republican states recently filed a lawsuit against it.
On March 28, the same day President Joe Biden attended a major campaign event at Radio City Music Hall, a group of 11 GOP-led states filed a lawsuit against his administration in the US District Court for Wichita, Kansas. The suit argues that the administration exceeded the Department of Education’s authority and hurt the states’ bottom lines when it implemented the SAVE Plan.
Kris Kobach, the attorney general of Kansas, issued a statement after joining the 10 other states in filing the suit. He accused Biden of stealing “from the poor and giv[ing] to the rich.” Kobach claimed the president is forcing people who didn’t go to college or who have already paid off their loans to “pay for the loans of those who ran up exorbitant student debt.”
The SAVE Plan revamped the IDR programs that previously offered forgiveness to borrowers after they made payments for 20-25 years. The president’s plan reduced that to 10 years for those who had taken out less than $12,000 in loans. People who borrowed more than $12,000 would see their repayment term increase by one year for every extra $1,000 borrowed. So, someone who borrowed $14,000 could have their debt wiped out in 12 years. The maximum repayment term is capped at 20 years for people with undergraduate degrees and 25 years for those with graduate degrees.
The lawsuit claims that the Supreme Court ruled against the administration last time they forgave a massive amount of debt from the American people. Utah, Texas, Alabama, Alaska, South Carolina, Idaho, Iowa, Nebraska, Louisiana, and Montana joined Kansas in filing the suit.
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