Biden to ask Supreme Court to revive student loan plan

Biden to ask Supreme Court to revive student loan plan

The Justice Department signaled on Thursday that it intends to petition the Supreme Court to resurrect a Biden administration proposal that would cancel millions of Americans’ school loans. This comes after two separate federal court rulings stopped the proposal.

On Monday, the 8th Circuit Court of Appeals became the latest court to invalidate the debt relief scheme of the Biden administration. The Biden administration signaled in a brief on Thursday that it intends to challenge this verdict to the Supreme Court.

The Justice Department’s court petition states, “The government will file an application with the Supreme Court to vacate a separate injunction against the Secretary’s action issued by the Eighth Circuit earlier this week.”

The disclosure was made in a filing for a second case appealing a November 10 order by a federal judge in Texas who also banned the student debt relief scheme on the grounds that it was “illegal.” The Biden administration has petitioned the 5th Circuit Court of Appeals to halt the Texas judge’s ruling.

In reaction to the Texas judge’s judgment, the Biden administration halted accepting applications for the relief program on November 11. The Education Department stated that it will retain the applications of the approximately 26 million individuals who have previously requested forgiveness.

The 8th Circuit Court of Appeals rendered its decision in response to a complaint filed by six Republican-led states alleging that the Biden administration exceeded its executive authority.

The Texas judge’s decision was in response to a complaint filed by the Job Creators Network Foundation, which alleged that the Biden administration violated federal regulations by failing to solicit public feedback on the program.

President Biden said in August that his administration will forgive student loan debt of up to $20,000 for millions of Americans. Under the new scheme, about 20 million people will be able to have their debt completely forgiven.

Borrowers who received Pell Grants, aid for qualifying low- and middle-income families, can receive up to $20,000 in debt relief, while other borrowers can receive up to $10,000 in debt relief.

Individuals who earned less than $125,000 in 2020 or 2021 and married couples whose combined income was less than $250,000 are eligible for loan forgiveness under this program.

Caroline Linton and Aimee Picchi contributed to the reporting for this article.


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