Overview

• 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.