Attorney General Ashley Moody, alongside 22 other attorneys general, is challenging the Biden administration's latest attempt to implement student loan debt forgiveness. This marks the fourth time such a policy has been contested by these officials, who argue it unfairly burdens working Americans with others' debts.
Moody stated, "Biden clearly does not believe in accountability or the American judicial system. He pardoned his felony-convicted son, and he continues to try and force hardworking Americans to pay off the student loans of others – even though we challenged these unlawful policies all the way up to the U.S. Supreme Court and won."
The U.S. Department of Education's Proposed Rule would allow for new loan balance waivers for borrowers experiencing hardship related to their loans. It also provides authority to cancel debt for those with $0 monthly payments due to perceived hardship from merely having debt.
Moody and her coalition argue that this rule should be withdrawn because it oversteps statutory authority as outlined by the Higher Education Act, violates separation-of-power principles under the major questions doctrine, includes flawed cost estimates, is based on a deficient negotiated rulemaking process, and seeks massive loan forgiveness during a lame-duck presidential administration.
In a letter addressed to Secretary of Education Miguel Cardona, Moody and her allies assert that “Everyone from the Supreme Court, to President Joe Biden, to former Speaker of the House Nancy Pelosi has publicly acknowledged that you do not have the authority to forgive debt except in the limited ways Congress clearly outlined. You must adhere to these warnings and follow the law.”
The coalition further argues that implementing such regulations could undermine recent electoral outcomes by disregarding voters' decision for executive change.
They urge withdrawal of this unauthorized rule before a new administration takes office on January 20, 2025.
States joining Moody include Alabama, Alaska, Arkansas, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas Utah and West Virginia.