Here’s a look at options for the student loan cases in front of the Supreme Court, and more legislative attempts to resolve student debt.
06/15/2023 1:45 P.M.
2 minute read
A U.S. Supreme Court decision in two cases challenging the Biden administration’s student loan relief program is expected this month—and perhaps before the week is over—but there are multiple ways the opinion and next steps could play out, according to media reports.
The court released three opinions on June 15, and more are expected June 16 with a total of 20 cases remaining this term. If the student loan relief decision isn’t issued Friday, according to Forbes, the court could issue additional opinions at its conference on June 22, or it could also add more opinion dates to the calendar this month.
In the first student loan relief case, Biden v. Nebraska, a group of six Republican-led states challenged the student loan forgiveness plan, claiming the loss of tax income and other revenue from state organizations’ business dealings with some loan servicers would cause their economies to suffer, ACA International previously reported.
In the second case, Department of Education v. Brown, brought by two individuals and backed by the Jobs Creators Network Foundation, a Texas district judge ruled in the complaint that the Biden administration lacked the authority to establish the student debt relief program, ACA previously reported.
During February’s oral arguments in both cases, the court was critical of the student loan relief plans, ACA previously reported.
Biden’s plan would reinstate student loan forgiveness for federal borrowers earning less than $125,000 a year, providing up to $10,000 in one-time debt relief, and up to $20,000 for students who received a Pell Grant.
Biden vetoed congressional efforts to repeal the plan in legislation, including in the debt ceiling bill, although that was in exchange for a hard stop to the student loan payment pause in August.
There are a few ways the cases could turn out in the Supreme Court, according to the Forbes article:
- If the court upholds the student loan relief plans, the Department of Education could act quickly to provide funds to approved borrowers, and applications would be available again.
- If the court denies the plans, and it being unlikely there could be another extension of the student loan pause, the Biden administration may use current student loan forgiveness options and a proposed change to repayment plans for borrowers.
Meanwhile, according to The Hill, Senate Republicans announced another legislative package to address student debt.
The Lowering Education Costs and Debt Act includes five bills sponsors say will “address the root causes of the student debt issue such as the increasing price of college and students taking out loans they can’t afford,” according to the article.
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