– Two conservative groups have filed a lawsuit against the Biden administration's plan to cancel $39 billion in student loans for over 800,000 borrowers.
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– The lawsuit was filed in Michigan and argues that the administration exceeded its authority by announcing loan forgiveness in July, shortly after the Supreme Court rejected a broader cancellation plan proposed by President Biden.
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– The lawsuit seeks to declare the cancellation illegal and halt the Education Department from implementing it while the case is being decided.
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– The lawsuit was brought forth by the New Civil Liberties Alliance on behalf of the Mackinac Center for Public Policy and the Cato Institute.
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– The Education Department has referred to the lawsuit as a "desperate attempt from right-wing special interests" to keep borrowers in debt and has vowed to defend working families.
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– This lawsuit is part of a series of legal challenges by Republicans against the Biden administration's initiatives to reduce or eliminate student debt.
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– The July 14 announcement by the Biden administration aimed to forgive loans for borrowers in income-driven repayment plans, addressing previous errors in payment counts that hindered progress toward forgiveness.
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– The lawsuit claims that Biden's action is illegal as it lacked Congressional authorization and did not undergo a federal rulemaking process that includes public feedback.
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