Student debt cancelation: legal or nah?

We’ve previously covered the details of President Biden’s plan to cancel up to $20,000 worth of federal student loan debt for borrowers earning less than $125,000 per year. But today we’re focusing on a different angle: is the move actually legal?

⚖️🎓 A deeper dive… According to experts, it’s unclear whether the Biden admin’s rationale for waiving student debt would hold up in court.

• The government’s case revolves around a 2003 law called the HEROES Act, which allows relief from student loan repayments during times of war or national emergency – but only if that relief is “necessary to ensure [that borrowers] aren’t placed in a worse position” because of said war or emergency.

❗ Why it matters: If a legal challenge makes it all the way to the Supreme Court, experts say Biden’s debt-cancelation plan would probably be overturned under this reasoning.

• In several recent cases, the Court’s conservative majority has ruled against expanding the Executive Branch’s authority when it’s not explicitly spelled out in legislation from Congress.

✋ Yes, but… It’s unclear whether any lawsuit challenging Biden’s student debt plan will even make it to court in the first place.

In order to file suit against student debt cancelation, a person or organization would have to prove two things: 1) actual harm was done to them as a result of the measure, and 2) blocking the measure would undo that harm.

• As for if something could happen, stay tuned. Republican lawmakers and organizations have indicated they’re in the midst of searching for a way to legally challenge the debt forgiveness.

📊 Flash poll: Do you think Biden’s plan to cancel federal student debt will ultimately be enacted?

Yes

No

Unsure/other