The Biden administration’s plan to provide student loan debt relief is facing a critical moment as it awaits major rulings from the Supreme Court. The plan aims to discharge billions of dollars of student loan debt and has been blocked by lower courts, leaving its fate in the hands of skeptical conservative justices. If implemented, the program could offer up to $20,000 in debt relief to 43 million eligible individuals, with an estimated cost exceeding $400 billion. President Biden made addressing student loan debt a key promise during his campaign, particularly targeting younger voters. The Supreme Court, with its 6-3 conservative majority, has 30 cases to rule on in its current term. Two of these cases involve Biden’s debt relief plan, one brought by several states and the other by individuals holding student loan debt. During oral arguments in February, conservative justices expressed doubts about the administration’s authority to forgive large amounts of student debt. The court’s decisions are expected to be issued throughout June, potentially putting the court in the spotlight after controversial rulings on issues such as abortion rights and gun rights. In a separate case, the Supreme Court recently allowed a $6 billion settlement that will cancel thousands of student loan debts.
The settlement pertains to loans taken out based on misrepresentations by for-profit schools. The case is unrelated to Biden’s broader effort to forgive student loan debt and has no impact on his pending plan. Another case the Supreme Court will hear alongside the Biden administration’s appeal involves two individuals who claim the administration failed to follow the correct procedure in announcing the loan forgiveness plan. The court will determine whether the plaintiffs have standing to bring the lawsuit and if the plan is lawful. The challenge to the program faces obstacles in demonstrating standing and convincing the conservative-leaning court of its legality, given their skepticism of broad assertions of federal power. The program has been on hold since October, and the application process has been closed. Borrowers currently have payment relief under a separate pandemic-related presidential order. In summary, the fate of Biden’s student debt relief plan hangs in the balance as it awaits rulings from the Supreme Court. The conservative-leaning court’s skepticism of executive power and the program’s potential violation of the Constitution and federal law pose significant challenges. The rulings, along with others the court is set to issue, will attract attention and scrutiny after previous controversial decisions. The administration’s plan to discharge billions of dollars in student loan debt is politically significant for President Biden and could provide relief to millions of borrowers if upheld by the court.
JULIE KIM
US ASIA JOURNAL
