December 1, 2022

Bee News Daily Blog

Supreme Court denies challenge to Biden’s student loan forgiveness program

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WASHINGTON, DC, October 20, 2022 – The Supreme Court on Thursday batted away an emergency appeal from a Wisconsin taxpayer group challenging President Joe Biden loan forgiveness program.

Associate Justice Amy Coney Barrett denied the request to temporarily block the program’s implementation a day after it was filed without explanation, as is often the case on the court’s emergency “shadow” docket. Barrett declined the request without referring the appeal to the full court. 

The appeal from the Brown County Taxpayers Association is one of several percolating in federal courts attempting to stop the effort, which critics argue exceeds the Department of Education’s authority. Biden announced the program in August.

Biden’s plan would cancel up to $20,000 in student loan debt for Pell Grant recipients and $10,000 for other borrowers, for people earning up to $125,000 a year or part of a household where total earnings are no more than $250,000.

Biden enacted the debt relief plan under the HEROES Act, which was passed after the Sept. 11 attacks sparked an American-led military campaign aimed at terrorism. The act gave the administration authority to forgive student loan debt in association with military operations or national emergencies.

The administration asserted that the law allows loan forgiveness for Americans dealing with financial hardship because of the COVID-19 pandemic.

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Source: AP News contributed to the article.