Biden’s plan for student loan relief faces its biggest test yet at the Supreme Court : NPR
2 min read
[ad_1]
The U.S. Supreme Court on Tuesday hears arguments around whether or not the Biden administration exceeded its authority with its scholar debt forgiveness application.
Copyright © 2023 NPR. All legal rights reserved. Take a look at our web page terms of use and permissions webpages at www.npr.org for more details.
NPR transcripts are established on a hurry deadline by an NPR contractor. This textual content may possibly not be in its ultimate type and could be current or revised in the foreseeable future. Precision and availability may range. The authoritative document of NPR’s programming is the audio file.
[ad_2]
Supply connection The Supreme Court took up its first major case involving President Joe Biden’s proposal to cancel student loan debt on Monday, in what could become the Biden administration’s first major Supreme Court test. The court heard oral arguments in the case, which stems from a policy issued by former President Donald Trump that restricts the Education Department’s ability to discharge students’ federally guaranteed loans.
At issue is an order issued by Trump in August 2019 that prohibits the Department of Education from forgiving any federally backed student loans — even those held by borrowers with proven financial hardship — unless they had been specifically authorized by Congress. The order, known as the “Borrower Defense Rule,” was aimed at preventing $5 billion in student loan debt from being wiped away without congressional approval.
Biden has been pushing for student loan relief for some time, and his proposed rule would dramatically expand the amount of student loans that can be discharged under certain circumstances. The change enjoyed bipartisan support in Congress, and Biden signed an executive order in February instructing the Department of Education to begin implementing the policy.
The case before the Supreme Court will determine if the Trump-era policy overrides Biden’s rule. It could have far-reaching implications for millions of debt-laden Americans and the Biden administration’s ability to make meaningful student loan relief a reality.
Opponents of the policy say that it is an illegal use of executive power, while its supporters argue that it is simply an example of the executive branch exercising its authority to provide relief to struggling borrowers. Though the Supreme Court took up the case, it is unclear when a decision will be issued.
No matter its outcome, the case’s impact could be huge. Student loan debt has ballooned over the past decade, and Biden’s proposed policy could potentially erase hundreds of billions of dollars in loan debt for millions of borrowers. It could also have implications for an array of other Biden administration initiatives, underscoring the difficulty of implementing sweeping reforms without approval from Congress.