Biden Administration Faces Lawsuit Over $147 Billion Student Loan Cancellation Plan

Seven Republican-led states allege the Education Department is bypassing legal processes to implement mass debt forgiveness.

The lawsuit claims the administration is secretly directing loan servicers to cancel debts before regulations are finalized.
States argue the plan violates federal statutes requiring a 60-day publication period before implementing such rules.
Previous attempts by the administration to cancel student loans have been blocked by federal courts.
The Education Department aims to forgive loans for borrowers with significant interest accrual and long repayment periods.
Critics accuse the administration of using loan forgiveness to gain political advantage before the upcoming election.