NEW YORK: Two hard-line groups in US have approached a federal court seeking an order to stop Biden administration’s move to cancel student loans worth $39 billion, western media reported.
In a petition filed in Michigan state, they said the US administration overstepped its authority when it had planned the discriminatory strategy, which could affect 800,000 borrowers. The Supreme Court has already dismissed the loan cancellation plan of President Joe Biden.
The lawsuit asks the court to issue an order against the cancellation of the loan and stop the Education Department from implementing such a plan, as the Supreme Court has already decided the matter.
Student Loans: Groups Seek Court’s Order to Stop Biden
The Education Department has termed the petition an attempt to put hundreds of thousands of borrowers under heavy debt.
After the Supreme Court’s decision, the US president said he would follow a different cancellation plan.
In July, Biden Administration said it would soon forgive loans to 804,000 enrolled borrowers under repayment plans.
The lawsuit says US president’s action is illegal and wasn’t approved by Congress, and went through without public feedback.
The right-wing groups say Biden’s plan undermines Public Service Loan Forgiveness.
The Mackinac Center and Cato Institute had sued the US administration over the cancellation plan, which the Supreme Court struck down.
