The White House’s policy would cancel up to $10,000 in federal student loan debt for borrowers who earn less than $125,000 per year, or less than $250,000 for married couples, or up to $20,000 for those who received federal Pell Grants. The Biden administration has been adamant that it has the legal authority to cancel student debt, citing a 2003 law giving the executive branch broad authority to overhaul student loan programs.
Missouri Attorney General Eric Schmitt (R), who is leading the lawsuit, said in a statement that the policy will worsen inflation for Americans who do not benefit from student debt cancellation. Arkansas, Iowa, Kansas, Nebraska and South Carolina joined Missouri in filing the complaint. Schmitt is also the Republican nominee for Missouri’s U.S. Senate seat in this fall’s election.
