Supreme Court weighs Biden's student debt forgiveness plan

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The plan could affect around 43 million Americans and entirely clear the balances of about 20 million.

PUBLISHED 1:40 PM EST Feb. 27, 2023The fate of President Joe Biden’s plan to forgive up to $20,000 in student loan debt is at stake as the Supreme Court hears oral arguments Tuesday in two lawsuits challenging the program.

In the lawsuits, the plaintiffs argue that the Biden administration overstepped its authority because it bypassed Congress and and that it failed to follow the proper procedures for establishing the rule. One lawsuit was filed by six Republican-led states, the other by two student loan borrowers in Texas — one who is ineligible for forgiveness entirely and one who is ineligible for the full $20,000.

“Indeed, the entire purpose of the HEROES Act is to authorize the Secretary to grant student-loan-related relief to at-risk borrowers because of a national emergency — precisely what the Secretary did here,” U.S. Solicitor General Elizabeth Prelogar, who is defending the administration’s program, wrote in an application to vacate a lower court’s injunction.

Yu added that the Americans hit hardest by student debt are often the same ones hit hardest by the economic struggles of the pandemic: low-income Americans, women and people of color. She and the Biden administration say that under the HEROES Act, the education secretary has the authority to provide relief as a result.

In the Texas case, U.S. District Judge Mark Pittman ruled the two borrowers, Myra Brown and Alexander Taylor, have the legal standing to bring their lawsuit. But the Biden administration argues that Brown, who would be ineligible for forgiveness under the Biden plan, would not be worse off financially if it were implemented and that Taylor would actually benefit, receiving $10,000 in debt relief.

 

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