Two conservative groups are asking a federal court to block the Biden administration’s plan to cancel $39 billion in student loans for more than 800,000 borrowers.
decision, and his administration is separately unrolling a more generous repayment plan that opponents call a “backdoor attempt” at cancellation.announced July 14 that it would soon forgive loans for 804,000 borrowers enrolled in income-driven repayment plans.
It’s meant to address a practice known as forbearance steering, in which student loan servicers hired by the government wrongly pushed borrowers to go into forbearance - a temporary pause on payments because of hardship - even if they would have been better served by enrolling in one of the income-driven repayment plans.
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Conservative groups sue to block Biden's plan to cancel $39 billion in student loansTwo conservative groups are asking a federal court to block the Biden administration’s plan to cancel $39 billion in student loans for more than 800,000 borrowers.
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