On Tuesday, the Supreme Court heard arguments for President Joe Biden’s student loan relief plan.
The proposal, which would relieve most borrowers of between $10,000 and $20,000 in current debt, has been put on hold ever since conservative opponents launched a string of legal actions last October.
Student Loan Cancellation
The Supreme Court will ultimately decide whether Biden’s plan is implemented, despite the fact that lower courts have heard the case and rendered judgments on it. The answer is most likely disappointment for the White House, given the tone of the oral arguments.
The six conservative justices made it clear during questioning that they strongly disagree with the politics of student loan forgiveness, which has historically been a reliable indicator of how this group will vote.
They did this by framing the problem as a “major question,” a freshly developed and vague notion that this Court has previously used to reject statutes with little additional justification.
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General student loan debt relief was one of Biden’s key campaign pledges when he ran for president. With student debt in the United States surpassing $1.75 trillion and an average interest rate of 5.8%, this has become a defining issue for young people.
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Under The Forgiveness Program
The Biden administration made an announcement on a forgiveness program in August 2022 to assist address this problem. If approved, all borrowers with incomes under $125,000 ($250,000 for married households) will have up to $10,000 in student loan debt forgiven.
For a total of $20,000 in loan forgiveness, any borrowers who won low-income Pell grants would also be qualified for an additional $10,000. This proposal has been presented by the Biden administration as an extension of the moratorium on a student loan debt that has been in effect since 2020.
The Donald Trump administration implemented this moratorium to help the economy remain stable during the pandemic. It resulted in the freezing of all federal student loans, fines, and interest.
During both of their terms in office, the Trump and Biden administrations renewed the moratorium on a regular basis. While the Supreme Court considers arguments regarding the Biden administration’s debt relief proposal, payments are still suspended.
The Department of Education reports that payments will start up again 60 days after the Court issues its decision. Payments will resume in late August if, for whatever reason, the issue is not fixed at that time.
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