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Monday, March 27, 2023

Supreme Court debates legality of Biden’s plan to write off student debt

On Tuesday, the Supreme Court heard arguments on the legality of President Joe Biden’s plan to forgive $430 billion in student debt for some 40 million borrowers.

The administration’s lawyer answered questions from the judges during the review of the case, which is a sort of test of the powers of the executive.

As a reminder, nine Supreme Court justices are considering the Biden administration’s appeal of two lower court rulings blocking the policy he announced last August in lawsuits from six conservative states and two student borrowers. opposed to the plan.

The administration’s plan provides forgiveness of up to $10,000 of student debt to borrowers with incomes below $125,000 a year. It is also proposed to forgive up to $20,000 in debt for Pell Grant recipients, which will affect an estimated 6 million students from low-income families.

Supreme Court Chief Justice John Roberts considered whether the scope of the bailout announced by Biden could be considered a simple modification of the existing student loan program, or whether it fell within the concept of “fundamental issues” that the president must negotiate with Congress.

The plaintiffs allege that the Biden administration failed to provide an adequate legal basis for the program.

In a message posted on Twitter, Biden wrote, “This assistance is extremely important for the more than 40 million Americans recovering from the economic crisis caused by the pandemic. We are sure it is legal.”

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