Big Sky Times

Montana Attorney General Austin Knudsen, along with ten other attorneys general, has filed a lawsuit against the Biden administration's student loan forgiveness scheme. The lawsuit challenges the Department of Education's interpretation of the Higher Education Act, which would result in the cancellation of over $100 billion in student debt.

In the lawsuit, the attorneys general argue that the Department of Education is overstepping its bounds by bypassing Congress and creating rules that would effectively turn loans into grants, impacting state economies and leading to potential fraud risks. Attorney General Knudsen and his counterparts assert that the Department's actions have no substantive limits and could set a dangerous precedent for abolishing student debt through rulemaking alone.

"The authority that Defendants claim now lacks any and all substantive limits and is tantamount to claiming that they can abolish all student debt at any time by rulemaking alone," the attorneys general stated in the lawsuit.

The 'SAVE Plan' proposed by the Biden administration, which aims to provide relief to student loan borrowers, is facing legal challenges due to concerns over its legality and potential adverse effects on state economies. If implemented, the plan could lead to a loss of tax revenue, job losses, increased law enforcement costs, and risks of fraud exploitation.

The lawsuit led by Attorney General Knudsen includes counterparts from Alabama, Alaska, Idaho, Iowa, Louisiana, Nebraska, South Carolina, Texas, and Utah. The legal action highlights the ongoing battle between state attorneys general and the Biden administration over the authority to enact student debt relief measures.

This latest legal challenge reflects a recurrent issue during President Biden's tenure, as similar attempts to cancel student loans in 2022 were deemed unconstitutional by the Supreme Court. The attorneys general are resolute in their stance against what they perceive as an unlawful exercise of authority, aiming to protect their states' interests and ensure compliance with established legal procedures.