Federal Judge Dismisses Republican-Led Challenge To Biden Student Debt Bailout

A federal judge dismissed a lawsuit on Thursday from six Republican attorneys general against the Biden administration for its policy to cancel $10,000 in student debt for millions of borrowers.

The student loan cancellation plan, forgives up to $10,000 for borrowers who make less than $125,000 a year and up to $20,000 for students who applied for Pell grants, faced a complaint from the state officials, who contended that “no statute permits President Biden to unilaterally relieve millions of individuals from their obligation to pay loans they voluntarily assumed.”