The Foundation for Government Accountability (FGA) applauds the seven states suing the Biden administration to invalidate its student loan cancellation program. Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina, as well as Arizona in a separate lawsuit, argue that President Biden overstepped his executive powers when he ordered the cancellation of what could amount to more than $1 trillion in student debt.
The lawsuits argue that student loan cancellation will place a massive financial burden on the federal treasury, increase inflation, and harm the financial interests of states and their residents.
“President Biden’s unlawful political play puts the self-wrought college-loan debt on the backs of millions of hardworking Americans who are struggling to pay their utility bills and home loans in the midst of Biden’s inflation,” said Arkansas Attorney General Leslie Rutledge in a statement announcing the lawsuit. “President Biden does not have the power to arbitrarily erase the college debt of adults who chose to take out those loans.”
“The president himself has all but admitted it’s illegal for him to unilaterally cancel student loan debt,” said FGA Legal Director Stewart Whitson. “The state lawsuits are necessary to restore the rule of law and to protect hardworking Americans from being forced to foot the bill for other people’s loans. Addressing the skyrocketing costs of higher education will require long-term solutions that focus on accountability and transparency, not illegal debt cancellation.”
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