A federal judge in Kansas has granted Montana Attorney General Austin Knudsen's request to block the Biden administration's student loan forgiveness plan. In response, Attorney General Knudsen issued a statement:
"This is great news that a court is blocking the President’s plan to buy votes from young, recent graduates and driving our country deeper into debt. Hardworking Montanans should not be forced to foot the bill for anyone’s education but their own."
Attorney General Knudsen filed a lawsuit against President Biden's plan in March. The Department of Education allegedly misinterpreted the Higher Education Act and bypassed Congress by creating rules that would convert most loans into grants from the federal government, with borrowers paying only a fraction of what they owe. According to the department's estimates, the "SAVE Plan" would cancel over $100 billion in student debt.
The cancellation of these loans could have significant economic impacts on Montana, including a loss of state tax revenue and jobs, as well as increased law enforcement costs.