The Biden administration rebuked a group of six states hoping to undo its plans to forgive student loan debt for millions of Americans on Monday.
Since President Joe Biden
In its response, the administration said the states had failed to prove they would be affected by the federal government cancelling student loan debt, a point previously made by the district judge. Some of the states represented are home to quasi-state agencies that service FFEL loans, and they argued the debt relief program would cause borrowers to drop these plans for loans offered by the federal government. But the feds said they amended their plan before the states filed their case, which meant no borrower would have had reason to ditch their FFEL loans.
The federal government has argued broadly that a 2003 law allows the government to alter or erase student loan debt during national emergencies, and the COVID pandemic demanded the canceling of student loan debt.
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