GOP states sue Biden administration to overturn student debt relief

Meanwhile, Education Department says, in a reversal, that some privately held loans will be excluded from forgiveness.

Seven Republican-led states sued on Thursday to overturn President Biden’s plan to cancel up to $20,000 in student debt for millions of borrowers, as conservatives advance legal challenges to one of the administration’s signature economic policy initiatives.

The Washington Post previously reported that GOP attorneys general from states including Arizona and Missouri had met privately to discuss a strategy that could deliver multiple cases filed in different courts around the country.

The Indiana lawyer suing over the policy claimed he has standing because debt cancellation could push up his state tax bill, since Indiana plans to tax federal debt relief as a form of income. White House press secretary Karine Jean-Pierre dismissed that claim on Tuesday, pointing out to reporters that “anyone who does not want to get debt relief can opt out.”

One of the complaints — filed by Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina — emphasizes that Missouri’s student loan servicer, which is part of its state government, could see a drop in revenue because borrowers are likely to consolidate their loans under the Federal Family Education Loan program.

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