Supreme Court to Decide Fate of Biden’s Student-Debt Relief Plan.
In a significant development, the outcomes of three crucial cases, including Biden v. Nebraska and US Department of Education v. Brown, are expected to be revealed soon. These cases revolve around President Biden’s student-debt relief plan, with two of them aiming to block its implementation.
Biden v. Nebraska was initiated by six states led by Republicans, who argued that the president’s proposal to cancel up to $20,000 in student debt for federal borrowers would adversely affect their states’ tax revenues. Additionally, the Missouri-based student-loan company MOHELA expressed concerns about its revenue. US Department of Education v. Brown was filed on behalf of two student-loan borrowers who contended that they did not qualify for the full $20,000 relief amount.
Both cases seek to permanently halt the distribution of debt relief to millions of borrowers. The final decision rests with the Supreme Court, which will determine the legality of the loan forgiveness or whether it should proceed. Irrespective of the verdict, the Education Department is preparing to resume loan payments in October, while interest will start accruing again in September after a pause of over three years.
The court’s ruling remains uncertain. However, previous decisions by the high court could offer some insight into how the justices are approaching student debt cases. To establish standing before the court, plaintiffs must demonstrate that the policy in question would harm them, that the harm is directly linked to the defendant, and that the relief sought would address those injuries. This was a point of scrutiny during the oral arguments for the student-debt relief cases in February.
Nevertheless, past rulings do not definitively predict the court’s decision on student-loan forgiveness, and the issue remains highly controversial. Many Republican lawmakers have criticized the plan as costly and unfair to individuals who have already repaid their student loans. Biden even had to veto a GOP-led bill passed by Congress that aimed to overturn the plan.
On the other hand, some Democratic lawmakers are determined to ensure relief for student-loan borrowers, and the White House remains confident in the legality of Biden’s plan. During a recent press briefing, Principal Deputy Press Secretary Olivia Dalton emphasized the administration’s commitment to defending the program and expressed hope that the Supreme Court would align with their legal arguments.
As the verdict looms, the stakes are high for millions of students and the future of student-debt relief hangs in the balance.
