Biden Administration Will Ask Supreme Court To Resume Student Loan Forgiveness Program

Topline

President Joe Biden’s administration plans to ask the Supreme Court to reinstate a student debt forgiveness program that has been held up by lower court decisions, as legal disputes prevent the federal government from providing up to $20,000 of loan relief to millions of borrowers.

Key Facts

The administration said in a court filing Thursday it will ask the Supreme Court to overturn a ruling from the 8th Circuit Court of Appeals temporarily blocking debt cancellation.

The filing came as part of an appeal to a separate ruling from a conservative Texas federal judge who struck down the debt relief program in its entirety, calling it an “unconstitutional exercise.”

The Education Department shut down its application for student debt relief following the Texas ruling, though the administration said some 26 million borrowers had already filled out the form.

Surprising Fact

The Supreme Court has not ruled on the merits of any challenges to the student debt relief program, but conservative Justice Amy Coney Barrett rejected two earlier attempts to block it.

What To Watch For

Mandatory federal student loan repayments are set to resume in January, though White House officials are reportedly discussing whether to extend the deadline for repayments while court battles go on. Required federal student loan payments have been paused since March 2020.

Key Background

Biden announced his long-awaited student debt relief program in August, promising $10,000 in federal loan relief for borrowers making up to $125,000 a year and $20,000 for those who meet the income requirement that also received Pell Grants. Republicans almost universally condemned the plan, with Senate Minority Leader Mitch McConnell (R-Ky.) calling it “socialism” that will worsen inflation and moderate Sen. Mitt Romney (R-Utah) claiming it was done “to bribe the voters.” The outrage prompted numerous lawsuits from conservative groups alleging the program amounted to an abuse of presidential power. Biden has defended the plan by arguing the education secretary has the power under the 2003 HEROES Act to modify student loans during times of emergency, including the Covid-19 pandemic.

Further Reading

Progressives Praise Biden’s Student Debt Cancellation As GOP And Moderates Voice Concern (Forbes)

Biden’s Student Loan Relief Program Blocked By Texas Federal Judge (Forbes)

Already Applied For Student Loan Forgiveness? 6 Key Updates (Forbes)

Supreme Court Will Not Block Biden’s Student Loan Forgiveness (Forbes)