The Biden administration appeals two cases challenging its student loan debt relief plans, currently on hold while court proceedings play out.
12/14/2022 10:50 A.M.
1.5 minute read
The U.S. Supreme Court has agreed to hear a second appeal from the Biden administration in cases challenging its student loan debt relief plans.
The Hill reports the case added to the Supreme Court’s docket “stems from a legal challenge brought by individual borrowers who argued the debt-relief program’s enactment was procedurally improper.”
In Texas, a federal judge invalidated the student loan debt relief program, and a federal appeals court in New Orleans upheld that ruling, which the Biden administration appealed to the Supreme Court.
In addition to that case, the Supreme Court previously agreed to hear the administration’s appeal of a ruling from a St. Louis appeals court, which stopped the debt relief program based on a plea from six Republican state attorneys general, according to The Hill.
The Biden administration has argued its plan is legal under the Higher Education Relief Opportunities for Students Act law from 2003.
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 mentioned above carry the most weight at this time.
The cases set for Supreme Court consideration could be heard in February, but it is unclear if the court will combine the cases or consider them separately, according to The Hill.
Meanwhile, the U.S. Department of Education (DOE) has extended the pause on student loan repayment, interest, and collections through June 30, 2023, while the Supreme Court’s hearing of the case proceeds, ACA International 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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