7 more states sue over Biden student loan plan

[BumRushDaShow]

Source: The Hill

04/09/24 11:29 AM ET


Seven states announced Tuesday they were suing the Education Department over President Biden’s SAVE income-driven repayment student loan plan, adding to a previous lawsuit by numerous other states. The lawsuit is spearheaded by Missouri, along with six other states, which argue the SAVE plan is unconstitutional and cost taxpayers $475 billion.

“With the stroke of his pen, Joe Biden is attempting to saddle working Missourians with a half trillion dollars in college debt,” Missouri Attorney General Andrew Bailey (R) said. “The United States Constitution makes clear that the President lacks the authority to unilaterally ‘cancel’ student loan debt for millions of Americans without express permission from Congress.”

“The President does not get to thwart the Constitution when it suits his political agenda. I’m filing suit to halt his brazen attempt to curry favor with some citizens by forcing others to shoulder their debts,” Bailey continued. “The Constitution will continue to mean something as long as I’m Attorney General.”

The lawsuit includes Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma. The states argue the SAVE plan is equivalent to the student debt relief plan the Supreme Court struck down last summer.

Read more: https://thehill.com/homenews/state-watch/4582814-7-more-states-sue-over-biden-student-loan-plan/

[bullimiami]

1. If this is Federal, not State money, how do they even have standing to sue.

[BumRushDaShow]

4. To them, it doesn't seem to matter

They have gotten so litigious that some serious sanctions need to be imposed on some of the loon AGs. The GOP doesn't know how to govern but they are experts at gumming up the works and wasting taxpayer money to do so.

[AZSkiffyGeek]

6. There was one claim that if the loans were forgiven

Less people would go into public service leading to a job shortage in the state.

[24601]

10. Missouri has standing because its Department of Education is one of the largest student loan servicers. Our son's

Grad School loans are serviced through them.

Student borrowers were essentially a pass-through to schools that continually raised tuition, room, board, and other fees without adding significant value over the last three decades. I have yet to see any effort to hold schools responsible for even one-half of the money spent on their institutions. A compromise solution will have broader support when schools assume responsibility for their increases - even if it's just the funds they spent on other than direct instruction.

[jimfields33]

13. It aggravates me that nobody has asked the schools to stop ridiculous tuition prices.

I think it’s time for tuition control like they do with rents. The free ride the universities get should be over. 65 thousand a year is insane. Using some of that endowment money should be required too.

[bullimiami]

16. But they will get paid off. No damage to them.

[24601]

19. There are two financial damages that provide a path to standing. The first is eliminating interest to zero, thereby

reducing the compensation going to loan servicers. The second is the lost time value of money because of delayed reimbursement. The USSC decided in 2023 that Missouri had standing because they would be deprived of loan servicer fees agreed to by the federal government.

[GB_RN]

23. Which Was A Bullshit Way To Rig It...

That stacked the deck so the fuckers could get the ruling they wanted, the wording of the actual COVID relief act be damned.

[bucolic_frolic]

37. Precedent no longer matters to this SCOTUS.

[Farmer-Rick]

41. Law is no longer a thing the Supremes really care about

The Supreme Court is more interested in religious dogma being forced onto an unwilling population.

They are more interested in supporting the filthy-rich oligarchs and their little monster the Stinking Nazi.

They are more interested in abusing minorities and the poor.

They are more interested in getting bribes from the filthy-rich and then ruling in favor of those filthy-rich then they are interested in the law.

Capitalism buying up our judiciary and justice system. It was bond to happen. Karl Marx predicted it.

[kwijybo]

44. Reality no longer matters to this SCOTUS

Remember the non-existent lawsuit about the wedding cake for a homosexual couple, that resulted in a SCOTUS ruling? The one where the baker finally admitted, "well, he could have sued me". And when the 'he' in question was asked, his answer was along the lines of "who? I would NEVER buy a wedding cake from her! And I don't need one, I've been married for 15 years. What are you talking about?"

There were others of a similar fashion, I just recall the details.

[GB_RN]

22. MOHELA Is The Servicer...

For the Department of Education. I know because they have my federal loans. 😉

It’s a quasi-governmental agency based in St. Louis. And they have been cited time and time again for screwing borrowers.

MOHELA would have actual standing, not the state itself, which was a convenient fact that the SCOTUS ignored and they jury rigged state standing. In fact, MOHELA wasn’t even a party to the suit to kill student loan forgiveness last year, and didn’t want any part of it.

So, these red state fuckers are just screwing students, again. Because, reasons.

Full disclosure, my loans are in the SAVE plan as well as PSLF, as I’m a nurse.

These jackoffs can go fuck themselves. It’s not Harvard MDs and lawyers getting relief. It’s people like me, and really, people not like me. People who are even lower on the socioeconomic ladder get a real hand up. But of course, that’s what this is all about. Can’t be helping anyone out. Gotta pull your own self up by your own fucking bootstraps, eh?

[KPN]

34. It's far worse than "Can't be helping anyone out. Gotta ...

pull your own self up by your own fucking bootstraps, eh?” They are fine with holding, if not outright pushing, people down so those who “deserve” it can have more.

[TomSlick]

25. But, does the forgiveness of loans cost Missouri any money?

What is the harm to Missouri?

[oldsoftie]

38. Where do you think the fed money comes from?

[bahboo]

2. the breathless hyperbole, makes them sound like the idiots...

they are....

[Voltaire2]

3. the enormous harm of some of their residents getting debt relief.

Lines right up with the enormous harm of some of their citizens getting affordable access to our ridiculously expensive healthcare system

I'm tired of their nonsense. They need to go away.

[dchill]

5. ...on behalf of the downtrodden, impoverished...

... billionaire lenders in their states! Screw the people.

[AllaN01Bear]

7. how does this fix roads and ect? are these red states? if so gee.

[elleng]

26. misery

[Autumn]

8. But we can shoulder the massive tax breaks for the wealthy and huge subsidies to oil companies?

Fuck these bastards.

[PortTack]

18. Ding ding ding

[SalamanderSleeps]

39. +1!

Autumn always pretty much knows where the bodies are buried.

[airplaneman]

31. And the cost of the industrial military complex. n/t.

[Bengus81]

46. Yep...my first thought when seeing the article.........

[4lbs]

9. Wow, surprise surprise. All 7 are *RED* states.

They want to keep "their people" ignant and lern onlee watt they sez.

[viva la]

11. What idiotic state would interfere with young citizens - the ones who work and achieve--

getting a reduction of debt so that they can spend more $ in the state???/

Oh, right, the same states that turned down the Medicaid expansion that would have improved the health of their citizens-- for free!

[twodogsbarking]

12. One party seeks to provide, the other seeks to deny. Y'all know which is which.

[FakeNoose]

14. Those 7 states have a lot of families that are struggling with tuition bills

I'm sure a lot of those parents would LOVE to get the help that Biden wants to give them. Why are these states so blind? What will they do next, kick people off the ACA? Grab people's social security checks out of the mail?

Sheesh!

[maxsolomon]

15. Biden's already been shot down on this issue once by the courts.

Don't be surprised if it happens again.

When that happens, will he get any credit for trying? Or just blame, because he doesn't have a magic wand? Does any blame ever adhere to Republics?

[BumRushDaShow]

17. Don't accept the RW framing of the issue

This new "SAVE" that was done after the SCOTUS decision is being implemented per this -

GOP states sue to scrap Biden’s student loan repayment plan


By Danielle Douglas-Gabriel
March 28, 2024 at 9:27 p.m. EDT

(snip)

Still, while the new lawsuit from the states revives arguments used in previous fights against debt relief, the Save plan is underpinned by a different authority than the forgiveness plan rejected by the high court. Whereas the Biden administration’s failed plan used a 9/11-era law to justify providing $430 billion in debt relief during the pandemic, the new Save plan was created using authority from the Higher Education Act that spawned income-driven repayment plans in 1993.

(snip)

https://www.washingtonpost.com/education/2024/03/28/student-loan-lawsuit-save-repayment-plan/

(supposedly no paywall link)

[maxsolomon]

20. I don't even know what the RW framing is.

I just know I don't trust the courts after Trump.

[BumRushDaShow]

21. The "framing" of them "claiming" and ASSuming that what is being implemented now

"is the same as" what was struck down before.

It's not the same.

[raging moderate]

28. But if a President has the power the right wing says he should have, how dare they object?

If Trump should have this kind of power, then Biden should have it, too! And this action is very small compared with what Trump would do! They are not too adept at logical thinking!

[Polybius]

30. Blame, but it won't matter

The Supreme Court won't strike it down until next year.

[PlutosHeart]

24. I hope these States just deny students help individually

somehow and the students kick them out. They need an uprising voter revolt.

[imaginary girl]

27. Funny they don't seem to think it's a problem when they ask us to pay subsidies and tax incentives for businesses

[azureblue]

29. Oh, BS

what they are whining about is private lenders who charge interest rates that would me a loan shark blush, losing that easy money. Remember that the GOP made student loan exempt from bankruptcy.
So, repay the principle plus 2%. Not 24%.

[Galraedia]

32. Nothing says republican like wasting tax dollars on lawsuits to stop people from recieving debt relief.

[Bucky]

33. How DARE you try to get out serfs out of debt!

[Old Crank]

36. How can they stop him?

They all agree the president has total immunity.....

[Passages]

40. Republican Party is only happy when working people are disadvantaged.

Tax relief for corporations is more their speed.

[Farmer-Rick]

42. The solution seems simple to me

Either all students who attended colleges in those states or students with college debt who live in those states can't participate in the federal plan.

Then watch as young people leave those states and as colleges in those states lose students.

[Johnny2X2X]

43. I am in the SAVE program

I consider it a signed contract, I literally signed my repayment plan. Going back on it would be a breach of that contract.

This will go the the SCOTUS, they'll rule against helping students, we know that for sure. But I think that the people who are already in the program won't be kicked out of it. Also, if you or someone you know owes student loans, sign up for the SAVE program right now!

[NanaCat]

45. I believe average Americans deserve the same breaks

On government loans as all of those corporations and rich people who got their COVID loans forgiven.

No more.

No less.

[elena92]

47. This is so vindictive and infuriating.

How do they get away with it?

[marble falls]

48. They haven't gotten away with anything. They are in the FA section of FAFO.