U.S. Supreme Court to Hear Biden's Student Loan Proposal
The cancellation of student loan debt proposed by US President Joe Biden will be reviewed by the US Supreme Court, further delaying the payment of reimbursements to the millions of Americans who applied for the program.
The nation's highest court announced that it would hear arguments on the subject in late winter, with a potential decision coming in the middle of 2023.
White House press secretary Karine Jean-Pierre issued a statement saying, "We welcome the Supreme Court's decision to hear the case on our student debt relief plan for middle and working-class borrowers this February."
People who make less than $125,000 per year will receive $10,000 in student loan forgiveness under Mr. Biden's plan, and Pell Grant recipients will receive an additional $10,000 in debt relief.
The cost of higher education in the US can exceed $100,000, burdening Americans with debt well into adulthood. The goal of Mr. Biden's program is to assist borrowers who are most likely to fall behind on their payments or default.
According to Ms. Jean-Pierre, "This program is required to assist over 40 million eligible Americans struggling under the weight of student loan debt to recover from the pandemic and move forward with their lives."
In addition, the program is legal, according to a thorough analysis by administration lawyers.
Out of the 26 million people who have applied for relief so far, the Department of Education began paying out reimbursements to more than 16 million of them, but it stopped processing applications in November.
Following a lawsuit filed by the states of Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina, who claimed that the program was illegal, an appeals court barred the Biden administration from canceling loans that same month. Additionally, the program was declared illegal by a federal judge in Texas.
Also Read: Ravish Kumar, the Face of NDTV, Resigns Amidst Turmoil
While the justices deliberated the case, the Biden administration had hoped that the Supreme Court would permit student loan relief payments to continue. However, the justices decided to maintain the hold on debt cancellation.
As we previously stated, student loan payments will be suspended until the Supreme Court rules on the matter, according to Ms. Jean-Pierre.
The moratorium on student loan payments imposed during the pandemic is scheduled to end at the end of the year, months before the court is anticipated to rule on the current repayment plan.
Debt holders will still need to repay loans if the program is ultimately canceled despite skyrocketing interest rates, record-high inflation, and an impending recession.
The decision made on Thursday is the most recent in a line of Supreme Court setbacks for the White House.
This year, the court issued decisions that restricted the EPA's ability to reduce carbon emissions and put an end to New York State's efforts to enact stricter gun laws.
The court's decision to reverse Roe v. Wade, which ended national protections for abortion, dealt the biggest blow. Many people think the action was politically motivated because it caught Mr. Biden's team off guard.
Despite the setbacks, the White House did manage to secure a significant victory on an immigration ruling that put an end to a Trump administration policy that had migrants sent back to Mexico while their asylum claims were being considered.
According to the US Constitution, the executive branch and the supreme court would function independently in a more ideal union. However, the conflict that the White House and the Supreme Court are currently engaged in is not new and typically arises with each administration.
U.S. Supreme Court to Hear Biden's Student Loan Proposal
The cancellation of student loan debt proposed by US President Joe Biden will be reviewed by the US Supreme Court, further delaying the payment of reimbursements to the millions of Americans who applied for the program.
The nation's highest court announced that it would hear arguments on the subject in late winter, with a potential decision coming in the middle of 2023.
White House press secretary Karine Jean-Pierre issued a statement saying, "We welcome the Supreme Court's decision to hear the case on our student debt relief plan for middle and working-class borrowers this February."
People who make less than $125,000 per year will receive $10,000 in student loan forgiveness under Mr. Biden's plan, and Pell Grant recipients will receive an additional $10,000 in debt relief.
The cost of higher education in the US can exceed $100,000, burdening Americans with debt well into adulthood. The goal of Mr. Biden's program is to assist borrowers who are most likely to fall behind on their payments or default.
According to Ms. Jean-Pierre, "This program is required to assist over 40 million eligible Americans struggling under the weight of student loan debt to recover from the pandemic and move forward with their lives."
In addition, the program is legal, according to a thorough analysis by administration lawyers.
Out of the 26 million people who have applied for relief so far, the Department of Education began paying out reimbursements to more than 16 million of them, but it stopped processing applications in November.
Following a lawsuit filed by the states of Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina, who claimed that the program was illegal, an appeals court barred the Biden administration from canceling loans that same month. Additionally, the program was declared illegal by a federal judge in Texas.
Also Read: Ravish Kumar, the Face of NDTV, Resigns Amidst Turmoil
While the justices deliberated the case, the Biden administration had hoped that the Supreme Court would permit student loan relief payments to continue. However, the justices decided to maintain the hold on debt cancellation.
As we previously stated, student loan payments will be suspended until the Supreme Court rules on the matter, according to Ms. Jean-Pierre.
The moratorium on student loan payments imposed during the pandemic is scheduled to end at the end of the year, months before the court is anticipated to rule on the current repayment plan.
Debt holders will still need to repay loans if the program is ultimately canceled despite skyrocketing interest rates, record-high inflation, and an impending recession.
The decision made on Thursday is the most recent in a line of Supreme Court setbacks for the White House.
This year, the court issued decisions that restricted the EPA's ability to reduce carbon emissions and put an end to New York State's efforts to enact stricter gun laws.
The court's decision to reverse Roe v. Wade, which ended national protections for abortion, dealt the biggest blow. Many people think the action was politically motivated because it caught Mr. Biden's team off guard.
Despite the setbacks, the White House did manage to secure a significant victory on an immigration ruling that put an end to a Trump administration policy that had migrants sent back to Mexico while their asylum claims were being considered.
According to the US Constitution, the executive branch and the supreme court would function independently in a more ideal union. However, the conflict that the White House and the Supreme Court are currently engaged in is not new and typically arises with each administration.
