The fate of President Biden’s plan to forgive up to $20,000 in student debt hangs in the balance. It will be decided by the Supreme Court in the coming weeks. A case called California v. Department of Education was filed by a group of Republican attorneys general. They argue against the authority of the Biden administration to forgive student debt. Their argument focuses on executive action being used for debt forgiveness.
The Biden administration has the authority to forgive student debt. This authority is derived from the Higher Education Act of 1965. The act allows the secretary of education to waive, modify, or cancel federal student loans. This can be done in cases of national or economic emergency. The administration believes that the COVID-19 pandemic qualifies as a national emergency. They argue that student loan forgiveness would help stimulate the economy.
A ruling from the Supreme Court is expected by the end of June regarding the case. If the court rules against the Biden administration, it would be a significant setback for the president’s debt forgiveness plan. However, a ruling in favor of the administration would open the door for millions of borrowers to have their student debt forgiven.
Borrowers and advocates for student loan forgiveness are closely monitoring the outcome of the case. A ruling against the Biden administration would greatly disappoint many struggling borrowers. Conversely, a ruling in favor of the administration would represent a major victory for borrowers and a significant step towards addressing the student debt crisis.
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