WASHINGTON — The Biden administration plans to ask the Supreme Court to reinstate the president's student debt cancellation plan, according to a Thursday legal filing warning that Americans will face financial strain if the plan remains stalled in court when loan payments are scheduled to restart in January.
College students qualify if their loans were disbursed before July 1. The plan makes 43 million borrowers eligible for some debt forgiveness, with 20 million who could get their debt erased entirely, according to the administration. The law allows the secretary of education to waive or modify terms of federal student loans in times of war or national emergency. The administration said the COVID-19 pandemic created a national emergency.The plan faces many other legal challenges In September, the Republican-led states of Nebraska, Iowa, Kansas, Missouri, Arkansas and South Carolina filed suit to halt the program, arguing that the pandemic no longer qualifies as a national emergency.
The Texas ruling was a bigger blow to the plan Pittman's decision strikes down the underlying legal argument used to justify Biden's plan. Previously, the White House has been able to dodge legal attacks made in lawsuits by tweaking details of the program. The case before the 8th Circuit could end up in the Supreme Court soon, since the six Republican-led states have asked the appeals court to keep the program on hold while the case plays out. If the appeals court grants that request, the administration will likely ask the Supreme Court to intervene. The states also could go to the high court if their request is denied.
Common search: 'Is student loan forgiveness canceled? Borrowers are confused about whether their debt will be canceled, or if they'll have to resume making payments on Jan. 1, when a pause prompted by the COVID-19 pandemic is set to expire.
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