more than four months tens of millions of Americans have waited for a sign about whether President Joe Biden’s $400 billion student loan forgiveness plan is legal or whether it would be struck down by federal courts as a power grab.
The Supreme Court may finally provide some answers Tuesday, though a decision is not expected until later this year.
Over the course of several hours, the nine justices will hear oral arguments in two cases challenging Biden’s plan. The plaintiffs in both assert that the administration exceeded its authority by attempting to grant debt relief to an estimated 40 million people.
Here’s a look at what’s happening at the Supreme Court.
Biden addressed the student loan litigation briefly during remarks Monday night.
“My administration is making our case to the Supreme Court, and I’m confident the legal authority to carry out that plan is there,” the president said at a White House ceremony celebrating Black History Month. “I promise you. I have your back.”
– Joey Garrison
The plaintiffs challenging Biden’s student loan forgiveness plan acknowledge that the current student loan system isn’t working. They just don’t think Biden’s plan will fix it.
“There is a student loan crisis in this country,” Karen Harned, chief legal officer for the Job Creators Network Foundation, said on a call with reporters Monday. “But this crisis cannot and will not be solved by the president creating a $400 billion program behind closed doors without any input from Congress or the American people.”
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The group is representing two borrowers: One who didn’t qualify for forgiveness because her loans are held by a private, commercial entity and another who didn’t qualify for the maximum possible relief because he wasn’t a Pell Grant recipient.
Biden’s proposal would wipe away $20,000 worth of debt for borrowers who also used a Pell Grant to pay tuition. Pell Grants are awarded to students from low-income families. He also wants to erase $10,000 in debt for most other borrowers.
– John Fritze
With many experts predicting President Joe Biden is in for a rough argument Tuesday over his $400 billion student loan forgiveness plan, a natural question has come up repeatedly in recent days: Is there a Plan B if the administration’s effort is ultimately struck down?
press secretary Karine Jean-Pierre for answering the question consistently: “We are very much confident in our legal authority here,” Jean-Pierre told reporters Monday – echoing the answer she gave to the same question Friday. “That’s why our Justice Department has taken it all the way to the Supreme Court.”
Translation: If there is a backup plan, the administration isn’t ready to talk about it. That’s not a surprise, though. A major element of the litigation is whether the administration used the right law to set up the loan forgiveness program. Acknowledging the administration is combing through federal statutes looking for some other way to authorize the program would give ammunition to the plaintiffs on the eve of the arguments.
– John Fritze and Joey Garrison