Overview

• A coalition of Republican-led states has filed a lawsuit to block President Biden's SAVE plan for student loan forgiveness.
• The lawsuit argues the plan is illegal and oversteps presidential authority by proposing to forgive billions in student loan debt without Congress's express permission.
• The SAVE plan offers affordable monthly payments based on income and family size, with forgiveness after 20 or 25 years, and early forgiveness for small loan amounts.
• The lawsuit's legal issues differ from the previous challenge, focusing on the authority under the Higher Education Act rather than the HEROES Act.
• The Biden administration is also developing another student loan forgiveness plan, targeted at borrowers facing financial hardships.