"Let's be clear about what they would be trying to do here: Thesame folks who voted for a $2 trillion tax giveaway for the rich and had hundreds of thousands of dollars of their own small business loan debt forgivenwould be trying to keep millions of working middle-class Americans in mountains of debt," Hasan told CNBC. I'm confident we're on the right side of the law, Biden said to reporters last Wednesday. Some of the finest moments in the courts history were pushing back against presidential assertions of emergency power.. True or crazy? Advocates worry that $10,000 in debt relief isn't enough. Standing behind Campbell are Missouri Attorney General Andrew Bailey, from left, Iowa Attorney General Brenna Bird, Ray Wagner of the Missouri Attorney Generals office and Nebraska Attorney General Mike Hilgers. student loan forgiveness Student loan borrowers stage an Aug 25, 2022 rally in front of the White House to celebrate President Joe Biden canceling some federal student debt. When were dealing with a nearly half-trillion dollar loan cancellation program, this is squarely in the ken of Congress, Campbell responded to Gorsuchs question. Ill try one more time. Over 323,000 borrowers received more than $5.8 billion in student loan discharge due to the action. The Supreme Court on Tuesday heard oral arguments in two challenges to President Joe Biden's student debt relief plan, with several conservative justices What The Supreme Courts Latest Move Means For Student Loan Arizona's Republican attorney general said he and others were looking to bring a legal challenge to the president's plan to cancel up to $20,000 in student debt for millions of Americans. Sotomayor emphasized the challenges that student borrowers may face without receiving debt relief. The administration has relied on this so-called compromise authority to discharge federal student loans before, albeit on a smaller scale. But will they vote? Roberts, the chief justice, near the start of the first argument pressed U.S. Here's how to combat inflation with Labor Day deals, 50% of employers expect job cuts, survey finds, Americans spend $314 a month on impulse purchases. Bidens plan would cancel up to $20,000 in student loan debt for borrowers making less than $125,000 per year, offering relief to more than 40 million Americans. In arguments lasting more than three hours Tuesday, Chief Justice John Roberts led his conservative colleagues in questioning the administrations authority to broadly cancel federal student loans because of the COVID-19 emergency. student loan forgiveness Bidens plan calls for eliminating up to $20,000 in student loan debt for millions of borrowers who make less than $125,000 individually or $250,000 as a couple. Jackson tied her point to her concerns about giving the challengers standing, suggesting that it would improperly lead the courts to encroach on the political branches of government. And they noted that the legislation the Senate advanced on Wednesday would also undo Bidens freeze on student loan payments that were originally paused by President Donald Trump in response to the coronavirus pandemic. Chief Justice John Roberts seemed particularly concerned about the scope and breadth of the program, and four other conservative justices questioned whether the HEROES Act of 2003, which the Biden administration said authorized the plan, contemplated such sweeping student loan forgiveness. is estimated to cost $400 billion over 30 years. Youre going to pay higher prices for things, Sotomayor said. THE HILL 1625 K STREET, NW SUITE 900 WASHINGTON DC 20006 | 202-628-8500 TEL | 202-628-8503 FAX. 2023 CNBC LLC. Supreme Court strikes down Biden student loan debt forgiveness Kavanaugh appeared wary of using executive authority for the cancellation of student debt during his arguments. All Rights Reserved. The Supreme Court has denied a request to delay student loan debt relief under a landmark settlement agreement that will provide billions of dollars in student loan forgiveness. Legal battles over student loan forgiveness continue. The Supreme Courts brief ruling denying the stay in Sweet v. Cardona was not a ruling on the merits of the Higher Education Acts compromise authority. Biden cancels as much as $20K in student loan debt, dismissed the states'case over a lack of standing, Legal challenges stack up for Biden's student debt forgiveness plan, denied a request to hear a case from a Wisconsin. 'There's a lot of people celebrating prematurely': GOP could try to block student loan forgiveness. He said they were looking at ways in which loan forgiveness could hurt state costs and its taxpayers, for example, but suggested they had other options as well. (Photo by Peter Zay/Anadolu Agency via Getty Images), Are You Getting Scammed Through AI Voice Swindles? The challenges to the presidents plan have largely been brought by right-leaning organizations or states. Student debt relief advocates gather outside the Supreme Court on Capitol Hill in Washington, Tuesday, Feb. 28, 2023, as the court hears arguments over President Joe Bidens student debt relief plan. (Stefani Reynolds), Why is it fair? The justices questions mirrored the partisan political divide over the issue, with conservatives arguing that non-college workers should not be penalized and liberals arguing for the break for the college educated. Importantly, the Supreme Courts denial of the schools request for a stay does not end their legal challenge. The estimated cost of Bidens plan is $500 billion, though he has downplayed it by suggesting it could be offset by other measures to reduce the deficit, including the Inflation Reduction Act. The state's Republican attorney general said he and others were looking to bring a legal challenge to the president's plan. The court's three liberal voices Justices Elena Kagan, Sonia Sotomayor and Ketanji Brown Jackson all opposed the decision. From CNN's Katie Lobosco. Kavanaughs views on the limits of executive power were a frequent topic in his confirmation hearings, but he appeared wary on Tuesday of using executive authority for a massive cancellation of student debt. What the Supreme Court ruling against student loan We deal with congressional statutes every day that are really confusing. Abby Shafroth, an attorney at the National Consumer Law Center, said it would be a mistake for the states to try to block the president from fulfilling a campaign promise. At least five Supreme Court justices a majority seemed deeply skeptical that Congress had contemplated such massive student debt relief when it passed the Why is it in the answer to say that it was warranted? Nearly 90 percent of the relief provided by the Department of Education would go to Americans earning less than $75,000 per year, and no relief would go to any individual or household in the top 5 percent of incomes, the White House said in a statement. Which Supreme Court justices voted against Bidens The decision on student loan forgiveness by the Supreme Court was a resounding setback for President Biden. The schools asked for a stay (a delay) in implementation of the settlement relief while they appealed. "If we can bring a challenge, we will bring a challenge," Brnovich told CNBC in an interview Tuesday. Theyre commercially held, but backed by the federal government, and borrowers holding these loans dont getdebt relief. He pressed Prelogar on why the administration believes the plan is fair, asking multiple times and expressing dissatisfaction with Prelogars answers in each iteration. The high-stakes battle over President Bidens student debt relief plan reached the Supreme Court on Tuesday, with each justice giving a glimpse into their thinking during back-to-back oral arguments. The administration says that 26 million people have applied to have up to $20,000 in federal student loans forgiven under the plan. Sen. Kyrsten Sinema (I) also voted in favor. Im an attorney focused on helping student loan borrowers. The Biden administration, along with its loan forgiveness announcement, released a 25-page memoby the U.S. Department of Justice making the case that debt cancellation is "appropriate" under the Heroes Act of 2003, which grants the president broad power to revise student loan programs. The Biden administration, along with its loan forgiveness announcement, released a 25-page memo by the U.S. Department of Justice making the case that debt You cant get credit. In his only other line of questioning to the solicitor general during the first case, Thomas noted the difference between past uses of the HEROES Act to pause student loan payments during the pandemic.Forbearance fits more comfortably in waive or modify language, Thomas said. Biden and Cardona had proposed a plan that would eliminate up to $10,000 of student debt for borrowers earning up to $125,000 annually, or up to $250,000 for married couples. Republicans say more borrowing could lead to even more inflation, hitting American pocketbooks. (Stefani Reynolds), Congress doesnt get much clearer than that. The federal government said the states had failed to prove they would be injured by the administration'sdebt relief initiative. This material may not be published, broadcast, rewritten, or redistributed. Advertisement. That means that the question of whether the Biden administration can utilize this authority as a fallback option for mass student loan forgiveness remains an open question, and one that the Court may ultimately revisit. The administration had pointed to a provision of the Higher Education Act which gives the Education Department broad authority to compromise federal student loan obligations in certain situations as the legal basis for agreeing to settle. Roe is gone, student debt is piling up and young people are mad. The states ask this court to deny this vital relief to millions of Americans, she said. The administration would also need to comply with several other procedural requirements, potentially pushing out relief by one or two years. That is all sure to make anxious the tens of millions of Americans who were just weeks ago celebrating their debt forgiveness. The president, who once doubted his own authority to broadly cancel student debt, first announced the program in August. Supreme Court Rejects Bidens Student Loan Forgiveness Plan "There are all sorts of different legal theories as to how you get the standing," Brnovich said. Senate passes bill to block Bidens student loan forgiveness - CNN Immediately following the ruling, the Education Department started notifying borrowers that they qualify for debt relief, which may include student loan forgiveness, payment refunds, and credit repair. Heres how. We have one plan, its the plan that weve announced, said Bharat Ramamurti, the deputy director of the National Economic Council, in comments to MarketWatch following the hearing. The ruling hands borrowers a victory, and gives the Biden administration a green light to continue implementing relief under the agreement. "These are people in red states and blue states teachers, nurses, hair stylists, veterans and home healthcare workers. More: Legal challenges stack up for Biden's student debt forgiveness plan, "Twenty-two million of you applied (in one week)," Biden said Mondayat a Democratic National Committee event. Opponents have argued that it is unlawful and claimed it would unfairly burden American taxpayers. His comments echo similar statements officials had made prior to the hearing. Activists want to disqualify Trump from ballot in key states under 14th Six reasons why Moms for Liberty is an extremist organization. A White House spokesman, Abdullah Hasan, accused the GOP of double standards that punished the middle class. If a majority of the Supreme Court concludes that the challengers lack standing, they may uphold Bidens student loan forgiveness plan, even if they disagree that it should be implemented. This will allow the Education Department to continue implementing the Sweet v. Cardona settlement relief, including the billions of dollars in student loan forgiveness. Justice Brett Kavanaugh suggested he agreed, saying it seems problematic for the administration to use an old law to unilaterally implement a debt relief program that Congress had declined to adopt. Do you have information you want to share with HuffPost? Roberts was among the justices who grilled Solicitor General Elizabeth Prelogar and suggested that the administration had exceeded its authority. ", More from Personal Finance:Here's how to combat inflation with Labor Day deals50% of employers expect job cuts, survey findsAmericans spend $314 a month on impulse purchases. The Montana senator also hails from a state that voted heavily for Trump in 2020, and Democrats will need to defend his seat if they want to retain their Senate majority next year. Bidens plan, if it goes forward, would ultimately wipe out up to $20,000 in federal student loans for up to 40 million borrowers. justice vote It's the latest salvo in the ongoing legal bickering between conservativegroups trying to derail the debt relief plan and the administration'shope of erasingmillions of borrowers' debt in keeping with a campaign promise before the year's end. Supreme Court blocks Bidens student loan forgiveness program The first obstacle for those hoping to bring a legal challenge against Biden's plan will be finding a suitable plaintiff, Tribe said. Vote (Greg Nash), I feel like we really do have to be concerned about jumping into the political fray, unless we are prompted to do so by a lawsuit that is brought by someone who has an actual interest.. China is in default on a trillion dollars in debt to US bondholders. "Under the Biden-Harris administrations debt relief plan,nearly 90 percentof the benefitswill go to people making less than $75,000 per year," Education Secretary Miguel Cardona wrote in an op-ed for USA TODAY. The U.S. Supreme Court is preparing to weigh in on the legal battle over President Biden's student loan forgiveness program. Our Administration is confident in our legal authority to adopt this plan, and today made clear that opponents of the program lack standing to even bring their case to court, wrote Education Secretary Miguel Cardona in an email to over 6 million borrowers. The plan has so far been blocked by Republican-appointed judges on lower courts. More than 60% of voters ages 18 to 34 support Biden canceling $10,000 to $20,000 of student loan debt, according toaMorning Consult/Politico surveyreleased in August. Advocates worry it's not enough. (Jacquelyn Martin, Pool), Were talking about half a trillion dollars and 43 million Americans. Following the Supreme Court hearing, the Education Department sent out a mass email trying to assure borrowers that Bidens student loan forgiveness plan is legal, and that the administration would continue to try to provide relief. Bidens plan, if it goes forward, would ultimately wipe out up to $20,000 in federal student loans for up to 40 million borrowers. "A lot of other people are very upset about this, not only because of legal arguments, but because they believe it's fundamentally unfair.". The Trump administration declared the Covid-19 pandemic a national emergency in March 2020. 2023 BuzzFeed, Inc. All rights reserved. Opponents trying to block the forgiveness will likely argue that the Heroes Act doesn't give the president the power to forgive student debt in the broad way he is trying to, said higher education expert Mark Kantrowitz. But even if Barrett and the three liberals reject that the challengers have standing, the five remaining conservatives could still deliver the debt relief plans fatal blow. The federal government has since given borrowers the option to opt-out of relief. No, we dont. Student loan forgiveness: Key statements from each justice Bidens Student Loan Forgiveness Plan Might Be In Trouble Following Supreme Court Hearing, Borrowers Receive Student Loan Forgiveness Approval Emails After Court Green-Lights Settlement. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. The administration appealed two of those challenges to the Supreme Court, which held an oral argument hearing last week. Some of the states represented are home to quasi-state agencies that service FFEL loans, and they argued the debt relief program would cause borrowers to drop these plans for loans offered by the federal government. The White House filed a response to that stay Monday. Key Points The justices should make their ruling on Bidens student loan forgiveness plan before their term ends for summer recess. It just seems kind of messed up that college is the expectation, higher education is the expectation, but then at the same time, peoples lives are being ruined, said Smith, 22, who lives in Atlanta. "The uncertainty for borrowers in the meantime is, I'm afraid, considerable," Laurence Tribe, a Harvard law professor, said in an interview last week. "And I think that means that if we can file a lawsuit, we should file it sooner rather than later. (Getty), Some of the biggest mistakes in the Courts history were deferring to assertions of executive emergency power. The Borrower Defense program can provide student loan discharges to people who were misled or defrauded by their schools. The case more broadly touched on a number of legal issues states ability to challenge administration policies they dont like and the scope of executive authority that revealed insights into each justices approach to cases. 453,000 Borrowers Approved For Student Loan Forgiveness Under Waiver As Processing Continues, Republican Effort To Repeal Bidens Student Loan Forgiveness Plan Gains Steam, This is a BETA experience. Some of the biggest mistakes in the courts history were deferring to assertions of executive emergency power, Kavanaugh said. You are also agreeing to our Terms of Service and Privacy Policy. Like most oral arguments, Thomas became the first justice to ask a question before remaining fairly quiet afterward. Americans should be able to have a little more breathing room as they recover from the economic strains associated with the COVID-19 pandemic.. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. ", OPINION:Efforts to block student loan forgiveness won't derail Biden's plan, try as partisans might. But it would take at least one other conservative vote to form a majority. A Division of NBCUniversal. The Biden administration has claimed authority to cancel the loans under the HEROES Act of 2003 to provide debt relief during the COVID-19 national emergency. WASHINGTON The Senate on Thursday approved a Republican bill that would invalidate President Joe Bidens student loan forgiveness program even though he has vowed to veto it if it reaches his desk. Copyright 2023 Nexstar Media Inc. All rights reserved. The Education Department has been unable to implement any student loan forgiveness under that plan because federal courts did grant a stay of relief, unlike in the Sweet v. Cardona challenge. Thomas leveraged the opportunity to kick off the high-stakes argument by noting other statutes that explicitly refer to debt cancellation. You cant get credit. We want to hear from you. The Supreme Court finished hearing oral arguments in two cases challenging President Joe Biden's student loan forgiveness Supreme Court blocks Biden plan to forgive student loan debt 4 Critical Student Loan Forgiveness Dates Borrowers Should Know About. WASHINGTON (AP) Conservative justices holding the Supreme Courts majority seem ready to sink President Joe Bidens plan to wipe away or reduce student loans held by millions of Americans. Republican-led states and lawmakers in Congress, as well as conservative legal interests, are lined up against the plan as a violation of Bidens executive authority.
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