Supreme Court asked to allow Biden’s student loan forgiveness plan

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The Biden administration asked the Supreme Court on Friday to reinstate the student loan forgiveness program, saying its creation was well within the education secretary’s remit and that a lower court decision to put it on hold would “impose millions of economically vulnerable borrowers in the dark”.

The U.S. Court of Appeals for the 8th Circuit on Monday ruled 3-0 to side with a coalition of six Republican-led states asking the court to file for forgiveness of debt amid pending lawsuits. The order will remain in effect until further notice from the court or Supreme Court, according to the order.

The ruling comes days after a federal judge in a separate lawsuit in Texas ruled illegal Biden’s debt relief plan, effectively barring the Department of Education from accepting more applications and canceling any debts. This week, attorneys for the Justice Department asked the U.S. Court of Appeals for the 5th Circuit to stay the ruling in the Texas case and asked the court for a Dec. 1 ruling “to allow the government to help to the Supreme Court” if necessary .

U.S. Attorney General Elizabeth B. Prelogar told the Supreme Court that if it chooses not to override the 8th Circuit’s injunction, it “should plead for an expedited briefing and advocate this deadline to prevent this uncertainty for the millions affected borrowers continues”.

Read the administration’s application to the Supreme Court

The Supreme Court on Friday asked states to file a response by noon on Wednesday.

Biden’s loan relief plan would forgive up to $10,000 in federal student debt for borrowers earning up to $125,000 annually, or up to $250,000 for married couples. Those who received Pell Grants are eligible for an additional $10,000 in forgiveness. To date, more than 26 million people have applied for Biden’s debt relief program, and 16 million of those files have been reviewed, the education department said.

The Justice Department released a 25-page memo stating the program is authorized by a 2003 law authorizing the secretary of education “to alleviate the hardships that federal student loan recipients may suffer as a result of national emergencies.”

But Republican-led states and other opponents of the program argue that the size of the loan forgiveness, costing about $300 billion over 10 years, warrants congressional approval because of its economic and political significance.

The lawsuit was brought by six states — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — who sued the administration in September. The states accuse the president of overstepping his authority and threatening the revenues of state entities that benefit from federal student loans.

The 8th Circuit’s decision put the program on hold while those legal arguments continued. The case is Biden v. State of Nebraska, et al.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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