A federal judge ruled that out of the 11 states that filed a lawsuit against President Joe Biden’s Student Loan Debt Forgiveness Plan, the case can proceed. In late March, 11 Republican-led states contested the Biden administration’s plan. Last year, the Supreme Court refused to support President Obama’s initiative of erasing $430 billion in student debt.
The states involved in the lawsuit against Biden’s plan were Alabama, Alaska, Idaho, Iowa, Kansas, Louisiana, Montana, Nebraska, South Carolina, Texas, and Utah. They challenged the legality of the Saving on a Valuable Education (SAVE) Plan. The lawsuit aimed to halt the progression of this plan by declaring it illegal in the U.S. District Court of Kansas.
The judge who made the ruling, Daniel Crabtree, was appointed by Barack Obama and serves as a U.S. district court judge in Wichita. He found that South Carolina, Texas, and Alaska had sufficient legal standing to challenge the Biden administration’s plan.
Crabtree rejected claims from eight other states led by Kansas Attorney General Kris Kobach, as they did not show direct harm to their states from the plan. The rejected states claimed potential reductions in income tax revenues or hiring obstruction due to the plan.
According to Reuters, a Kobach spokesperson mentioned that the agency would review the judge’s decision and consult with other coalition states to determine the next steps.
The SAVE Plan offers relief to 8 million borrowers, allowing them to reduce monthly payments or receive complete debt forgiveness. Monthly payments under this plan are determined by factors like family size, income, and discretionary income.
Biden initially proposed the SAVE Plan in 2022, intending to forgive about $430 billion in student debt. However, due to challenges from Republican states, the plan faced a deadline of 2023 for implementation.
Despite criticisms, Biden remains committed to reforming the student loan system to make higher education more accessible. As he stated in March, his goal is to ensure that education acts as a pathway to the middle class, not a barrier to opportunity.