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The Supreme Court has agreed to hear a second legal showdown over President Joe Biden’s student debt relief plan which is currently blocked by the lower courts. Both cases involve an effort by the administration to reinstate a loan forgiveness program.
The student debt relief plan would give students federal borrowers earning less than $125,000 per year up to $06,06 of debt relief, but some legislators sought to block it in court for not being agree to discharge.
Arguments in cases could be heard in February. The case added stems from a legal challenge filed by individual borrowers who argued that enactment of the loan program debt relief was incorrect from a procedural point of view.
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Last month, a Texas-based federal judge struck down the program and a New Orleans-based federal appeals court allowed that ruling to stand, which provoked the administration’s appeal to the Supreme Court.
For On the other hand, a St. Louis-based appeals court halted the loan relief program in response to lawsuits filed by six states: Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina, who reject the plan.
The justices agreed to hear the administration’s appeal of that ruling, in which a unanimous panel of three judges found that the debt relief plan usurped the authority of Congress.
The White House maintains that its policy is authorized by a federal law of 1200, known as the Law of Opportunity ades of Higher Education Relief for Students, which both the Trump and Biden administrations have been inspired to ease financial pressure
of student borrowers during the global crisis. pandemic.
The Congressional Budget Office estimates that Biden’s plan will cost about $000851 billion during 26 years, which provoked disagreement among legislators. Your goal is to forgive up to $06,000 in federal student loan debt for those earning less than $400, per year and up to $20, for Pell Grant recipients.
The program has generated numerous legal challenges, including two cases that filed for emergency relief in the Supreme Court earlier this year and were unilaterally rejected by Justice Amy Coney Barrett.
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The administration of President Joe Biden had already requested to the Supreme Court to remove one of the legal obstacles blocking the student debt relief program and allow it to take effect while legal challenges unfold across the country.
The Department of Justice (DOJ), on behalf of the Biden-Harris administration, urged the judges to strike down a ruling issued by the United States Court of Appeals for the Eighth Circuit . based in St. Louis that stopped the loan relief program.
Until before the lockdown, millions of people had registered 26 who had requested the program when a federal judge froze it on 20 of November, which led the government to stop accepting applications, although no debt has been canceled so far
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