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Tipsheet

Missouri AG Takes Aim at Biden's 'Third and Weakest' Student Loan Bailout Attempt

AP Photo/Evan Vucci

Seven states are suing to stop the Biden administration’s latest student loan bailout. 

The suit, led by Missouri Attorney General Andrew Bailey, comes after the U.S. Supreme Court ruled in favor of his previous two challenges against the administration’s bailout schemes. 

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In the suit, the States assert, “Through compulsory process at the end of August, the States have just obtained documents proving that the Secretary [of Education] is implementing this plan without publication and has been planning to do so since May. The Secretary of Education (1) is unlawfully trying to mass cancel hundreds of billions of dollars of loans, and (2) has quietly instructed federal contractors to ‘immediately’ begin cancellation as early as September 3, 2024 (but possibly beginning on September 7).”

“The actual cost of the Third Mass Cancellation Rule is thus the $146.9 billion estimated by the Department plus much of the $475 billion cost of the SAVE Plan,” the States note. “This is the third time the Secretary has unlawfully tried to mass cancel hundreds of billions of dollars in loans. Courts stopped him the first two times, when he tried to do so openly. So now he is trying to do so through cloak and dagger.” (Missouri Attorney General's Office)


“The Biden-Harris Administration is dedicated to saddling working Americans with Ivy League debt, even if they have to break the law to do it," Bailey said in a statement. "Our latest lawsuit challenges their third and weakest attempt to mass-cancel student loans in the dark of night without letting Congress – or the public – know about it. That’s illegal. We successfully halted their first two illegal student loan cancellation schemes; I have no doubt we will secure yet another win to block the third one. They may be throwing spaghetti at the wall to see what sticks, but my office is meeting them every step of the way.”

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The attorneys general of Georgia, Alabama, Arkansas, Florida, North Dakota, and Ohio are joining Bailey in filing the suit. 

 

 

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