Six states (Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina) jointly claim Biden’s debt relief would harm tax revenue in their states and the finances of state-based loan agencies. These student loan servicers and companies manage commercially-held FFELP loans and the suit argues letting FFELP borrowers consolidate to be eligible for cancellation would hurt their bottom lines. In response, the Biden administration reversed cancellation eligibility for borrowers with commercially-held FFELP loans. Arguments were heard Oct. 12; a ruling on the request for an injunction is expected soon.
