As the end of the Supreme Court’s term draws near, the eagerly awaited decision on President Joe Biden’s proposal to cancel up to $20,000 of student loan debt for millions of Americans is on the horizon.
Experts predict that the ruling will likely be released on Friday.
Supreme Court Decision on Biden’s Student Loan Forgiveness Plan Imminent
Amy Howe, a co-founder of Scotusblog, expressed her expectation for the decision to be issued on Friday, barring any unusual circumstances.
Law professor Jed Shugerman from Fordham University and Boston University also concurred, stating that it was almost certain that the justices would release the remaining decisions before their summer recess, preserving July and August for their own respite.
There is a slim chance of an additional decision day next week or any request for further deliberation on this case.
Student loan borrowers eagerly anticipate reading the ruling on the Supreme Court’s website, likely on Friday morning.
The impending ruling by the justices will determine the fate of President Biden’s plan to alleviate over a quarter of the nation’s outstanding federal student debt, totaling $1.7 trillion.
Higher education expert Mark Kantrowitz estimates that approximately 14 million people would have their student debt completely eliminated through this program.
Moreover, an estimated 37 million individuals would be eligible for some degree of loan cancellation, with amounts up to $20,000 for those who received a Pell Grant during college or up to $10,000 for others.
Since its announcement, the student loan forgiveness plan has faced several legal challenges.
To date, at least six lawsuits filed by Republican-backed states and conservative groups have contested the program, with many accusing the president of exceeding his executive authority.
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Supreme Court Examines Legal Challenges
Two of these legal challenges have made their way to the Supreme Court. The first, was initiated by six GOP-led states (Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina), and the second was support ted by the Job Creators Network Foundation, a conservative advocacy organization.
In these cases, the justices have scrutinized whether President Biden possesses the authority to forgive such a substantial amount of student debt without explicit authorization from Congress.
With an estimated cost of $400 billion, the program would rank among the most expensive executive actions in US history.
Biden administration officials maintain that the president is acting within the bounds of the law.
They point to the Heroes Act of 2003, which grants the US Secretary of Education the power to make changes to the federal student loan system during national emergencies, citing the COVID-19 pandemic as an ongoing emergency when the forgiveness plan was introduced.
Opponents seeking to block the forgiveness program argue that the president is misinterpreting the law, contending that it only allows for limited relief, not the broad-based loan cancellation that President Biden aims to implement.
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