Student loan forgiveness: When will the Supreme Court make a final decision on Biden’s plan?
The Supreme Court will hear challenges on Feb. 28 to President Biden’s plan to decide if the White House can legally cancel loan debt.
The Biden administration had origianlly said that more than 16 million people’s applications for federal student debt forgiveness had been “completely accepted” and forwarded to loan servicers.
Before the U.S. Supreme Court rules on the program’s constitutionality, the government had released a breakdown of the number of borrowers in each state who have filed for and been authorized under the program’s expansive debt relief provisions.
Opponents of the Biden administration’s proposal to reduce student loan debt had filed briefs with the Supreme Court, arguing that the government had exceeded its power.
Six states governed by Republicans and two individuals who did not qualify for the relief argued in separate filings that the administration should not be permitted to erase up to $20,000 in student loans for eligible borrowers.
Two of the most prominent challenges against Biden administration initiatives before the Supreme Court this term are being heard in an oral argument today, Feb. 28.
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As a result of the legal challenges, the program is on hold until the summer, leaving millions of borrowers and Biden’s campaign pledge in doubt. The government has previously claimed that the court shouldn’t consider the merits of the two complaints because the challengers don’t have “standing,” or the legal right to sue.
The decision could affect more than 40 million Americans, which would eliminate up to $10,000 in student loans for borrowers who earn less than $125,000. Most Americans with student debt are aged between 25-34 and 67 percent are younger than 40.