Republican attorneys general from Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma are also involved in the lawsuit.A United States District Court judge in St. Louis heard arguments Monday morning on whether the federal government can continue with a studentdebt- forgiveness plan due to begin next month.The lawsuit, filed last month by Missouri Attorney General Andrew Bailey, seeks to block an incomedriven repayment plan for borrowers proposed by President Joe Biden’s administration.Missouri Solicitor General Josh Divine argued in United States District Court for the Eastern District of Missouri Monday morning that the repayment plan, dubbed the SAVE Plan, was never authorized by Congress.Divine is representing Missouri along with Republican attorneys general from Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma.“The defendants have asserted authority to redistribute $5 million from teachers, farmers, nurses and truckers to those who haven’t paid off their student loans yet,” he said at the conclusion of his argument. “Congress simply did not give the president or the secretary (of education) authority to make a massive, monumental policy.”Judge John Ross said it would take him “a couple of weeks” to craft an order. If Bailey gets his way, the court will block the federal government from approving additional borrowers for the SAVE Plan. Those who have already applied would not be affected, which U.S. Department of Justice Attorney Steven Petri said Monday was “news to (him).”Bailey’s office blocked implementation of the Biden administration’s first attempt at loan forgiveness in a lawsuit settled by the U.S. Supreme Court in June 2023. He has threatened to file suit against the latest plan for loan forgiveness announced by the federal government in April.The SAVE plan, an acronym for “Saving on a Valuable Education,” sets monthly payments based on income, with some borrowers having monthly payments waived. Those who borrowed less than $12,000 and have been paying for more than 10 years may have their debt canceled, with an additional year for each $1,000 additional borrowed.The first forgiveness plan used the HEROES Act, which provides relief in time of emergency, to authorize $10,000 and $20,000 payments to borrowers. The HEROES Act was a central part of the Supreme Court case. Chief Justice John Roberts wrote in the ruling that, “the (HEROES Act allows the Secretary to ‘waive or modify’ existing statutory or regulatory provisions applicable to financial assistance programs under the Education Act, not to rewrite that statute from the ground ...
