SCOTUS takes on student loan forgiveness
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It’s finally here: the highest court in the land is tackling the topic of student loan forgiveness, in a pair of cases that promise to impact tens of millions of Americans – no matter which way they turn out. Yesterday, the Supreme Court heard arguments seeking to overturn the Biden administration’s proposed student loan forgiveness plan.
🎓 Background: The plan, announced last August, would forgive up to $20,000 worth of federal student-loan debt for certain borrowers. At least some part of the plan would apply to an estimated 95%+ of the 45+ million Americans who owe a collective $1.6 trillion in federal student debt.
The Biden administration began accepting forgiveness applications in mid-October, but the process was halted due to ongoing litigation – aka the two cases heard yesterday – before any debt forgiveness could officially take place.
- If enacted, the program would cost the US government an estimated $400 billion over the next decade, per the nonpartisan Congressional Budget Office.
⚖️ Now, back to the cases… There were two separate lawsuits heard yesterday before the Court: one brought by six Republican-led states, and one brought by a pair of student-loan borrowers from Texas who wouldn’t benefit from all of the plan’s provisions.
The plaintiffs in both cases argued that the Biden administration doesn’t have the legal authority to forgive student loans for all Americans, since the plan wasn’t first approved by Congress. And up to this point, lower courts have mostly agreed with their reasoning.
On the flip side, the Biden administration argued that both cases shouldn’t have come before the Court in the first place, since none of the plaintiffs were materially harmed by the debt cancellation. This would mean there would be no legal standing to sue.
👀 Looking ahead… The Supreme Court’s final decision is expected in late June or early July.
đź“Š Flash poll: Do you support the Biden administration's plan to cancel some federal student-loan debt?
See a 360° view of what the media is saying →
Sprinkles from the Left
- Some commentators argue that the Biden admin’s student-loan forgiveness plan makes sense based on its merits, but it was enacted using a suspect legal strategy and will likely end up being overturned by the Supreme Court.
- Others contend that the Biden admin actually does have the legal standing to forgive student debt without congressional authorization under the HEROES Act, according to the lawmakers who enacted the law in the first place.
- “Biden’s worthy student loan forgiveness faces its fate” –NY Daily News Editorial Board
- “Can Biden legally cancel student debt? There’s no question.” –Former Rep. George Miller (D-CA)
- “Supreme Court conservatives may want to block student loan forgiveness. But they’ve hit a snag” –LA Times Editorial Board
Sprinkles from the Right
- Some commentators argue that Biden’s student-loan forgiveness plan is a naked ploy to buy votes from young Americans, and should be struck down as unconstitutional by the Supreme Court.
- Others contend that the Biden admin lacks the legal authority to unilaterally cancel student loans for all Americans without first obtaining congressional approval, so his plan is all-but-certain to be overturned by the Supreme Court.
- “The King, Student-Loan Forgiveness, and the Supreme Court” –WSJ Editorial Board
- “High court takes up Biden student loan power grab” –Las Vegas Journal-Review Editorial Board
- “Biden’s Student-Debt Decree Wrong on Every Level” –National Review Editorial Board
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