Has the Biden administration admitted that its student loan forgiveness is illegal? That’s what it looks like after his move late last week to change its forgiveness scheme by restricting the eligibility of some 800,000 borrowers after six states sued.
Missouri, Arkansas, Nebraska, Kansas, South Carolina and Iowa are alleging in federal court that they will be harmed by the forgiveness of the Federal Family Education Loan Program (FFELP). Private lenders originated those loans before Democrats nationalized the student loan market in 2010. About $214 billion is outstanding, most of which is traded in the private market.