Seeking to block plan to pay off $39 million in Biden student loans

by time news

2023-08-08 02:48:18

The New Civil Liberties Alliance filed a lawsuit to block the plan to pay off $39 million in student loans promoted by President Joe Biden.

The lawsuit was filed by the group New Civil Liberties Alliance on behalf of the Mackinac Center for Public Policy and the Cato Institute.

The process against seeks to block the plan to cancel 39 million dollars in student loans was filed in Michigan.

The groups are seeking a federal court to end the Joe Biden administration’s scaled-back plan.

According to the New Civil Liberties Alliance, the Democratic government is exceeding its authority.

“The lawsuit accuses the administration of exceeding its powers in announcing relief from the student loan debt of 800 thousand borrowers worth 39 billion“, It indicated.

The legal action seeks to have a judge rule that the plan to cancel student loans is illegal and block the Department of Education from carrying it out until the case is decided.

Republicans since the announcement of the plan have opposed it and have forced Biden to seek new measures.

“The plan is intended to address a practice known as forbearance management, where government-hired student loan servicers pushed borrowers into forbearance, a temporary pause in payments due to hardship, even if they had been better”, FoxNew explained about what was described by the Department of Education.

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