Wednesday, November 20

Biden Administration Asks Supreme Court to Uphold Student Loan Forgiveness Plan

The Biden administration filed a legal brief with the United States Supreme Court upholding its plan to cancel $20,000 in student debt; the arguments will be heard at the end of February

Before the pandemic, at least 10 million borrowers were in default or delinquency.
Before the pandemic, at least 10 million borrowers were in default or delinquency.

Photo: STEFANI REYNOLDS/Getty Images

Maribel Velazquez

This morning the Biden administration asked the Supreme Court to uphold its plan of $20,000 student loan forgiveness.

In their arguments before the supreme court, lawyers for the United States Department of Education and Department of Justice They mentioned that the challenges to the future plan presented by parties that did not demonstrate the damage of the policy that is usually a requirement to establish the so-called legal situation.

“We continue to trust our legal authority to adopt this program that will ensure that the financial damage caused by the pandemic does not drive borrowers into delinquency and default,” said US Secretary of Education Miguel Cardona in a statement.

Legal representatives also denied the claim that the Biden administration was overstepping its authority and laid out the White House’s argument that it is acting within the law.

The Court agreed to hear the arguments at the end of February in a pair of challenges to President Joe Biden’s student loan forgiveness program: one brought by six GOP-led states who argue that forgiveness will hurt companies in their states that service federal student loansand another that involves two plaintiffs who say they have been wronged by the policy due to being partially or totally excluded from loan forgiveness.

Until an agreement is reached, the Biden administration cannot carry out the plan that he had reported and that until before closing his portal, at least 26 million Americans had requested relief.