Republicans have made one thing clear about their very existence they will likely forever be in bed with some form of special interests despite their consistent and often robotic denials otherwise. According to reports, 6 Republican-led states starting with Missouri have filed federal lawsuits against the Biden Administration in an effort to stop the government’s own efforts to forgive student loans in one of the first and most unprecedented actions ever taken on the matter.
“In addition to being economically unwise and inherently unfair, the Biden Administration’s Mass Debt Cancellation is another example in a long line of unlawful regulatory actions. No statute permits President Biden to unilaterally relieve millions of individuals from their obligation to pay loans they voluntarily assumed,” Nebraska Attorney General Doug Peterson’s office said in a news release.
In essence, Republican-led states are attempting to argue that they don’t care about borrowers and are upset that loan servicers are ‘being deprived of the ongoing revenue of bilking students and families to the tune of hundreds of millions of dollars just to get an education.
Wait until you find out why Republicans are suing. According to one suit filed in Missouri, Republicans argue that forgiving student loans in any form hurt the loan servicer rather than the borrower. Special interests groups have managed to convince Republicans that the government is attempting to incentivize people to consolidate their loans into government-held loans thereby creating pathways for more forgiveness. As of Friday, this is now why the plan has been scaled back and privately held loans of any kind are now excluded if they weren’t consolidated before 29 September.
“Republican officials from these six states are standing with special interests, and fighting to stop relief for borrowers buried under mountains of debt,”said White House spokesman Abdullah Hasan in an emailed statement according to CNN.
“The President and his administration are lawfully giving working and middle-class families breathing room as they recover from the pandemic and prepare to resume loan payments in January,” he said.
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