US President Joe Biden’s student loan forgiveness plan could face a stiff challenge at the Supreme Court

YEREVAN (CoinChapter.com) — US President Joe Biden has a new problem on his plate. Months after he forgave billions of dollars worth of student loans amid stiff criticism, the United States Supreme Court is set to hear oral arguments against the move. The closely-followed case will determine if the Biden Administration had the executive authority to take such a step. 

Opponents of Joe Biden stall his student debt forgiveness plans 

Last August, President Biden announced that he would cancel billions of dollars of the country’s outstanding federal student loan debt. His opponents were quick to criticize. Many warned that the move would cause inflation. Others, especially Republicans and other right-wing groups, initiated legal actions against him. According to them, the plan to forgive student loans constituted an overreach of his powers.

While there were at least six lawsuits against the program, two in particular made national headlines. One of these cases was filed by a group of conservative-leaning states. They were unhappy with the US Government’s decision to impose the leniency on them. These include the states of Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina.

With a second case coming from advocacy organizations and student loan borrowers against Joe Biden’s decision, a Federal Appeal court blocked it last October. 

In response, the Biden Administration moved to the United States Supreme Court with a plea to overrule the ban. According to reports, the court will entertain the relevant lawsuits on February 28, 2023. 

President Biden had invoked the HEROES Act to cancel up to $10,000 in federal student debt for Americans making under $125,000 a year. Moreover, he had canceled up to $20,000 for students from lower-income families who are recipients of Pell grants. 

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Joe Biden faces stiff opposition in the US Supreme Court

While one cannot rule out that the Supreme Court may rule in Biden Administration’s favor, the odds are against the president. A majority of the sitting judges (6-3) are conservatives and may not be as sympathetic to Joe Biden as he may hope. 

Nevertheless, the US Government has urged the Court to uphold its controversial student loan forgiveness plan. According to the Biden Administration, the White House has not violated any rules. Moreover, Joe Biden’s office has argued that the decision will in no way negatively impact state Governments. should not be allowed to hinder its implementation. 

The US Government has also argued that the decision of the lower court has thrown “millions of economically vulnerable borrowers in limbo”. Upholding the ban, according to the Biden Administration, will cause “damaging and destabilizing result”. 

With the Republicans determined to pull the breaks on his plans, the whole country will be watching to see how the Supreme Court will rule.