Federal judge hears challenge to student debt relief

OMAHA, Neb. (WOWT) - Nebraska’s attorney general has gone to court over a plan to reduce student loan debt.

Doug Peterson and attorneys general from five other states say President Biden’s plan isn’t legal. A federal judge in the eastern district of Missouri heard two hours of arguments Wednesday.

The attorney generals are on one side. The government on the other.

The states of Nebraska, Iowa, Missouri, Kansas, Arkansas, and South Carolina want the judge to stop the plan to cancel up to $20,000 in student loan debt.

If President Biden’s plan takes effect, pell grant recipients would have $20,000 in student loan debt canceled. $10,000 for other student loan borrowers.

The government estimates it would impact 370,000 Nebraskans and 660,000 Iowans.

The attorney generals argue that the president has overstepped and that this is something for congress to do, which it has tried and failed. The government told the judge that the Heroes Act gives them the power, a federal law to provide relief to individuals in an emergency, which spawned after the 9/11 terrorist attacks.

The states said we’re no longer in an emergency, pointing to an interview the President gave last month declaring the pandemic is over.

After two hours of debate in St. Louis, the federal judge took no action Wednesday afternoon.

Again, the attorney generals want him to stop the student debt plan in its tracks.

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