Biden Administration Asks Supreme Court to Reinstate Student Loan Forgiveness Program
President Joe Biden's administration plans to ask the Supreme Court to restore a student debt forgiveness program that has been suspended by lower court rulings as legal disputes prevent the federal government from providing up to $20,000 in loan relief to millions of borrowers.
KEY FACTS
The administration said in a court filing Thursday that it will ask the Supreme Court to overturn a ruling by the 8th Circuit Court of Appeals temporarily blocking the debt cancellation.
The filing came as part of an appeal of a separate ruling by a conservative federal judge in Texas that struck down the debt relief program in its entirety, calling it an "unconstitutional exercise."
The Department of Education ended its application for student debt relief after the Texas ruling, although the administration said about 26 million borrowers had already filled out the form.
WHAT TO WATCH FOR
Mandatory federal student loan repayment is set to resume in January, though White House officials are reportedly debating whether to extend the repayment deadline while court battles continue. Required federal student loan payments have been suspended as of March 2020.
KEY BACKGROUND
Biden announced his long-awaited student debt relief program in August, promising $10,000 in federal loans for borrowers earning up to $125,000 a year and $20,000 for those who meet the income requirement who also received Pell grants. Republicans have almost universally condemned the plan, with Senate Minority Leader Mitch McConnell (R-Ky.) calling it "socialism" that will worsen inflation and moderate Sen.
Mitt Romney (R-Utah) said it was done "to bribe voters." The outrage sparked numerous lawsuits from conservative groups, who argued the program was an abuse of presidential power. Biden defended the plan by arguing that the Secretary of Education has the authority under the HEROES Act of 2003 to modify student loans during times of emergency, including the Covid-19 pandemic.
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I believe what Biden is trying to do will relieve many students who won't have to brother with the huge debt burden on their heads.
I find it absurd that some people are against this and term it as socialism; in my opinion, socialism makes the world and the people in it much better. so I see nothing wrong with what Biden is doing.