Groups sue Biden administration over new $39 billion loan forgiveness program

Two think tanks are suing the Biden administration over a new attempt at student loan forgiveness for more than 800,000 borrowers that would cost $39 billion.

The New Civil Liberties Alliance sued on behalf of free market think tank Mackinac Center for Public Policy and libertarian think tank the Cato Institute to block the program on Friday, saying that the administration doesn't have the authority to implement loan forgiveness on its own.

The new rule would count periods of forbearance as if borrowers were making payments if they would have qualified for income-sensitive payment plans.

The argument is that loan servicers steered borrowers toward forbearance instead of an income-sensitive payment plan, causing them to pay more than they should have.

The program is only fixing these "past administrative failures," proponents said.

But in reality, Biden is trying to find every excuse and loophole he can to push through the loan forgiveness he wants so it looks like he kept his promise to young voters.