The Biden administration has filed a legal brief with the Supreme Court, defending the President’s signature of student loan forgiveness. before the oral arguments scheduled for next month.
Here’s the news.
Supreme Court to End Biden’s Single Student Loan Forgiveness Plan
Biden’s student loan forgiveness program would have allowed millions of borrowers to receive $20,000 in federal student loan forgiveness. The Department of Education estimated that up to 40 million borrowers could qualify for relief, and nearly half have student loan debt. federal all abolished.
But federal courts, in response to several legal challenges, have blocked the program. The Biden administration has appealed two cases to the US Supreme Court:
- The 8th Circuit Court of Appeals execute a nationwide order the program stopped. The legal challenge was brought by a group of states led by Republicans, who argued that Biden’s loan forgiveness plan deprived state agencies that administer the Family Federal Education Loan Program ( FFELP), causing damage to the state. The core of the argument is that borrowers consolidating FFELP loans into direct loans to qualify for student loan forgiveness will reduce the loan portfolio of FFELP agencies and , therefore, to reduce the payments they will receive from those who borrow.
- Separately, the 5th Circuit Court of Appeals refused to overturn a court decision hit down Biden’s amnesty program is unconstitutional. In this legal challenge, a credit union argued that two borrowers were wrongly denied the right to issue. public opinion prior to implementation of the program, in violation of federal law.
Biden Administration Tells Supreme Court Student Amnesty Plan Is Unlawful
In what legal knowledge Presented this week, the Biden administration strongly defended the student forgiveness program, arguing that the HEROES Act of 2003 — a federal law that would have changed federal student programs to time of national emergency – relief granted.
“Several provisions of the HEROES Act emphasize the intent of Congress to allow the Secretary to respond quickly and comprehensively to national emergencies,” Justice Department lawyers said in the brief. “The lower court orders wrongly stripped the Secretary of his legal authority to provide student loan relief to borrowers affected by national emergencies, leaving millions of borrowers in the lurch. soft money in limbo.”
A key legal issue arises in both cases – the proposition that a party making a legal challenge must be able to demonstrate that they suffer from an insurmountable risk associated with the policy challenge for a federal court even to the legality of the policy. . The Biden administration has argued that Plaintiffs lack standing in both cases.
“In order to establish stage III, the plaintiff must show that he suffered an injury in fact that can be seen in the defendant’s challenging behavior and is likely to be remedied by the court,” said the authority in the brief. “Neither the (Republican-led) State (in the 8th Circuit case) nor (the two borrowers in the 5th Circuit case) can meet those essential requirements.”
The administration said any financial link between Biden’s student loan forgiveness plan, FFELP agencies, and the state treasury is tenuous and speculative at best. And the briefs not only mean the HEROES Act doesn’t require public comment periods before emergency rules are issued, but two lenders say they’ll be hurt worse if they don’t. receiving the forgiveness of the students they appear to be. be eligible under the plan.
Next Steps in Student Pardons Important Legal Pardons
In turn, the plaintiffs who first brought the legal challenges have to file their own legal briefs by January 27. Then the Biden administration has the chance. to respond to that information; that answer is due by February 15th. This is the official hearing where the lawyers of all parties will appear before the entire Supreme Court which is scheduled for February 28.
“The Biden-Harris administration remains committed to the fight to provide significant student debt relief to tens of millions of Americans,” Education Secretary Miguel Cardona said in a statement to the Friday. “We remain confident in our legal authority to use this program to ensure that the financial damage caused by the disease does not drive borrowers into delinquency and default.”