Iowa, Nebraska join in challenge to cancel Biden’s student loan program

Published: Sep. 29, 2022 at 11:04 AM CDT
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(KTIV) - State administrations in Iowa and Nebraska are among six states who have filed a challenge to President Biden’s student loan cancellation program in Missouri federal court.

As part of the filing, the states have asked the court for an immediate temporary restraining order pausing the program. Prompt relief is being sought because the Biden administration has indicated it will start cancelling loan balances as early as next week.

Among the reasons cited by the states in the complaint are: the economy is not well with no sign of relief, the economic burden of loss and prices increases will impact the working class and poor, and none of the benefit will accrue to those who worked and paid their debt.

No borrower will be disadvantaged by an immediate court order delaying the loan cancellation program because loan repayments and interest accruals have been paused since March 2020.

“A significant majority of Americans have already paid off their student loans or chose not to pursue a higher education degree at all,” said Iowa Gov. Kim Reynolds. “By forcing them to pay for other people’s loans – regardless of income – President Biden’s mass debt cancellation punishes these Americans and belittles the path they chose. This expensive, unlawful plan is an insult to working people and must be stopped.”

Nebraska Gov. Pete Ricketts thanked Nebraska Attorney General Doug Peterson for leading the effort.

“President Biden’s student loan forgiveness scheme is fundamentally unfair and would harm the American families forced to pay for it. Additionally, the executive branch does not have unilateral authority to impose a sweeping student loan cancellation plan. Thanks to Attorney General Peterson for stepping up with these other states to hold the Biden-Harris Administration accountable to the law,” Ricketts said.

Other states joining in the filing include Arkansas, Kansas, Missouri, and South Carolina.