Conservative groups sue to block Biden plan canceling $39 billion in student loans

Two conservative groups have asked a federal judge to block the Biden Administration’s plan to cancel student loans worth $39 billion for over 800,000 borrowers.

In a suit filed in Michigan on Friday, the groups argue the administration overstepped their power when they announced the forgiveness just weeks after Supreme Court struck down an broader cancellation plan proposed by President Joe Biden.

The suit asks for a judge’s ruling that the cancellation is illegal, and to stop the Education Department from implementing it until the case has been decided. The lawsuit was filed by New Civil Liberties Alliance, on behalf of Mackinac Center for Public Policy & Cato Institute.

The Education Department described the lawsuit as “a desperate effort by right-wing special interest groups to keep hundreds and thousands of borrowers in credit card debt”.

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The department issued a statement saying that it would not back down and give up on defending the working families.