Supreme Court Will Not Block Biden’s Student Loan Forgiveness

Topline

A request for the Supreme Court to block President Joe Biden’s plan for broad federal student loan debt cancellation was rejected Wednesday, in a major blow to the highest-profile legal challenge to the debt relief plan so far.

Key Facts

Conservative Justice Amy Coney Barrett rejected the motion from a Wisconsin group without offering an explanation.

The Brown County Taxpayers Association filed the motion Wednesday, asking the court to immediately pause the loan relief program while it moves forward with litigation against the Biden Administration.

A federal district court tossed a lawsuit from the group aiming to stop the program, which they have since appealed to the 7th Circuit Court of Appeals.

The motion to the Supreme Court argued the program should be halted immediately because Biden overstepped his authority by authorizing loan forgiveness, which they claimed will lead to a “gargantuan increase in the national debt.”

Barrett is responsible for handling emergency motions from Wisconsin.

What To Watch For

Student loan relief for some borrowers is expected to come as soon as Sunday.

Key Background

Biden announced a long-promised student loan relief plan in August, granting $10,000 in loan cancellation for all borrowers making less than $125,000 a year, and $20,000 for those who received Pell Grants. Applications for debt relief started rolling out during a beta test period over the weekend before formally launching Monday. Up to 43 million borrowers are eligible for relief under the plan, according to the White House. The Biden Administration has cited the HEROES Act to defend the plan’s legality, which grants the Education Secretary the ability to modify student loans during times of national emergency, such as the Covid-19 pandemic.

Further Reading

Group Asks Supreme Court To Halt Biden’s Student Loan Forgiveness Plan (Forbes)