Florida Attorney General Ashley Moody, along with 22 other attorneys general, is pushing back against what they describe as the Biden administration’s “unlawful” attempt to implement a new student loan forgiveness program.
This marks the fourth time the administration has sought to relieve student loan debt after previous efforts were blocked by the courts, including a landmark ruling by the U.S. Supreme Court.
In a strongly worded statement, Attorney General Moody criticized President Joe Biden for what she called a lack of accountability.
“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,” said Moody.
The U.S. Department of Education’s (DOE) latest Proposed Rule would grant the Secretary of Education authority to cancel student loan debt for borrowers who are deemed to have experienced hardship. This includes cases where borrowers have $0 monthly payments, with the rule citing the “existence of the debt itself” as a source of hardship.
The attorneys general argue that the rule unlawfully expands the Secretary’s authority under the Higher Education Act and violates legal principles established by the Supreme Court.
Attorney General Moody and the coalition of attorneys general outlined several legal and procedural issues with the rule:
- Unlawful Authority: The rule grants authority to the Secretary of Education that is not prescribed by the Higher Education Act and is currently enjoined.
- Separation of Powers: It violates separation-of-power principles under the major questions doctrine, which requires congressional authorization for significant policy changes.
- Cost Estimates: The rule includes flawed cost estimates that do not accurately reflect its financial impact.
- Deficient Process: The rulemaking process was based on a statutorily inadequate negotiated rulemaking procedure.
- Timing: The rule seeks to implement a large-scale loan forgiveness program during a lame-duck presidential administration, bypassing the new incoming leadership.
In a letter to Education Secretary Miguel Cardona, the attorneys general argue that the proposed rule exceeds the Department’s authority. “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 letter reads.
The coalition also expressed concern about the DOE’s plans to identify eligible borrowers and implement loan waivers as a one-time action shortly after finalizing the rule. They argue this would undermine the electorate’s decision to change the party in charge of the Executive Branch, referencing the incoming administration’s January 2025 start date.
The attorneys general have urged the DOE to withdraw the proposed rule and allow the new administration to determine the best course of action regarding student loan forgiveness.
Attorney General Moody is joined in this effort by attorneys general from 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.
This collective action reflects a broader push by Republican-led states to challenge what they view as federal overreach in student loan policies.
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