Joe Biden’s student loan forgiveness program goes before the U.S. Supreme Court to decide the legality of the program.
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- President Biden promised to forgive up to $20,000 per borrower in federal student loan debt.
- His plan, however, has hit multiple legal roadblocks over the past six months.
- In December, the U.S. Supreme Court agreed to hear the case for and against Biden’s plan.
The U.S. Supreme Court will hear arguments on Tuesday that will ultimately decide the future of President Joe Biden’s student loan forgiveness plan.
SCOTUS combined two lawsuits that aim to stop Biden’s plan from going into effect. Up to $20,000 in canceled loans for 43 million borrowers with outstanding federal student loan debt is at stake in this case that dates back to September.
The Biden administration has stood by its assertion that debt cancellation is lawful thanks to the Higher Education Relief Opportunities for Students (HEROES) Act.
Plaintiffs, however, have maintained that the HEROES Act does not give the Department of Education (ED) the authority to cancel large swaths of debt. One plaintiff, a coalition of six Republican-led states, adds that debt cancellation would harm the states due to a loss of revenue from loans Missouri services.
Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina filed the joint lawsuit most relevant in Tuesday’s case.
Biden extended the pause on federal student loan payments to July 1. The extension is meant to give SCOTUS time to issue its final decision.
This story is developing and will be updated