Supreme Court’s Hearing on Biden’s Student Loan Forgiveness Plan.
March 20, 2023
Last Tuesday, February 28th, the Supreme Court held a hearing on President Biden’s student loan forgiveness plan and expressed skepticism on Biden’s overall goal. Previously, the plan was blocked back in November of last year by lower courts, but the Biden administration appealed to the Supreme Court in response, which agreed to take up to two cases.
Biden’s plan was crafted together earlier last year and since then has struggled to make its way through Congress and now the Supreme Court. The bill, if passed, is said to cancel up to $20,000 dollars in federal student loan debt for up to 40 million borrowers. The two cases regarding the plan are Biden v. Nebraska, showing whether or not the secretary of education has the authority to execute the plan, and Department of Education v. Brown, which contemplates if Biden would violate his assigned presidential powers with the plan. Per The New York Times, both cases will bring reveal whether “the challengers have legal standing to bring their lawsuits” and if the program exceeds “the legal authority that Congress granted to the Education Department.”
Additionally, several states have ill feelings towards the bill and feel that it will do more harm than good as it could deprive states of revenue encouraging borrowers to apply to other Federal Loan Program to merge those loans into the Department of Education’s Direct lending program. Chief Justice John G. Roberts was one of the justices who share the skepticism regarding the bill. He questioned the Biden administration if they made the plan with enough “congressional authorization to undertake one of the most ambitious and expensive executive actions in the nation’s history,” according to the New York Times.
The Supreme Court could make a decision at any given moment, but it is expected that they will make a decision in May or June. Even then the Supreme Court could take even longer to make a decision, but until then we shall keep you updated on the Court’s decision.