The Supreme Court will consider the two major challenges to the student debt forgiveness program from the 5th and 8th Circuits.
01/04/2023 2:15 P.M.
2 minute read
The U.S. Supreme court is set to consider two challenges related to the Biden administration’s student loan forgiveness plan next month, according to a new report from The Hill.
Here’s the breakdown of these two cases and where they currently stand:
Biden v. Nebraska
A group of six Republican-led states challenged the student loan forgiveness plan, claiming the loss of tax income and other revenues from state organizations’ business dealings with some loan servicers would cause their economies to suffer, ACA International previously reported.
The case from the 8th Circuit Court of Appeals will now be reviewed by the U.S. Supreme Court.
The 8th Circuit issued a temporary injunction in November to halt the program until the legality of the debt relief is decided. The Supreme Court said in December it would hear the case, putting the program on hold until then, ACA previously reported.
Department of Education v. Brown
In this case brought by two individuals, backed by the Jobs Creators Network Foundation, a Texas district judge ruled in the complaint that Biden lacked the authority to establish the student debt relief program.
In November, the 5th Circuit Court of Appeals maintained the district court’s decision, and in December, the Supreme Court said it would review the case on its merits, according to The Hill.
What’s Next?
The Hill reports that borrowers can likely expect a final ruling around May or June, when justices typically release opinions to the public for the term.
By Jan. 4, the Biden administration must provide the Supreme Court with an opening brief for the cases, and the Jobs Creators Network Foundation and GOP-led states have until Jan. 27 to submit their individual briefs to the court.
Before the Supreme Court hears the case’s oral arguments, Biden will have until Feb. 15 to submit a reply brief.
The Supreme Court will hear oral arguments in the cases on Feb. 28.
Several other cases in courts across the U.S. are on the books challenging the student loan forgiveness plan, but those in the appeals process in the 5th and 8th Circuits carry the most weight at this time, ACA previously reported.
Meanwhile, the U.S. Department of Education (DOE) has extended the pause on student loan repayment, interest, and collections through June 30, 2023, ACA previously reported.
The DOE reports that borrowers can use the continued payment pause to make sure their contact information is correct with student loan servicers and consider signing up for electronic debit and income-driven repayment plans.
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