Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina have filed a response at the U.S. Supreme Court challenging President Biden's student loan forgiveness program.
The 'Outnumbered' panel reacts to the president's announcement as his student loan handout continues to face legal challenges in the courts.
"The Act requires a real connection to a national emergency. But the Department’s reliance on the COVID-19 pandemic is a pretext to mask the President’s true goal of fulfilling his campaign promise to erase student-loan debt," the states wrote in their response. The White House argues both that the states behind the legal challenge don’t have actual standing to bring the case, and also that they would win on the merits. The federal government argues the action is within its authority.
The administration told the court that borrowers eligible for loan forgiveness have come to expect they will receive $200 to $300 reductions in monthly payments."Yet because of the injunction, the borrowers most likely to default if payment obligations resume without some relief face prolonged uncertainty about the scope of their payment obligations and when those obligations will resume," it asserted.
"In contrast to the Department’s absence of any immediate injury, lifting the injunction risks unleashing on the States a wave of harms that could not be undone because of the Cancellation’s 'irreversible impact.' … Given this lopsided balance, the Court should deny the Department’s request to vacate the Eighth Circuit’s injunction," the states wrote.
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