Supreme Court to Hear Second Biden’s Student Loan Forgiveness Case

The country’s top court is scheduled to listen to arguments in a new legal battle against the Biden Administration’s student loans forgiveness program. Texas Case Reaches Supreme Court
On Monday, The United States Supreme Court announced that it would hear arguments in February in the second appeal pertaining to President Biden’s program to forgive student loans which was first revealed on August 1st. 1 If it is implemented, Biden’s student loan forgiveness program will allow for the forgiveness of up to $10,000 of Federal student loans that are eligible to borrowers who meet the income requirement and up to $20,000 of the federal debt on student loans to Pell Grants recipients (the maximum of private loans will not be permitted to be forgiven).

The legal matter that was filed in Texas it is in dispute between U.S. Department of Education and two plaintiffs: Myra Brown and Alexander Taylor. A group called the Job Creators Network, arguing for the defendants, claimed the plaintiffs were discriminated against from Biden’s plan. Brown holds federal loans, but isn’t qualified for debt forgiveness program because they’re not in default. Taylor can only claim $10,000 credit relief for student debt as (due to the financial situation of his parents when he was in school) the latter was not eligible for the Pell Grant while in school.

“Respondents alleged that they were improperly denied the opportunity to comment on the plan and represented that if the Secretary had proceeded through notice and comment, they would have urged him to adopt broader eligibility criteria and to provide greater debt relief,” is the explanation in the official application.

Student Loan Relief Left in the Lurch
The two court decisions of the federal appeals courts have stopped Biden’s proposed student loan forgiveness program to the ground. Both cases are scheduled to be heard before the Supreme Court in February 2023 but a date has not yet been set.

Students who qualify for federal student loans have some relief for a short time as they wait for a final decision. While the Biden Administration had previously announced the final extension of temporary relief to student loan debts under COVID-19 in a press announcement, the current pause on repayments and the fixed zero-interest rate for Federal student loans with eligibility be in effect until 2023.

“If the debt relief program has not been implemented and the litigation has not been resolved by June 30, 2023 — payments will resume 60 days after that,” according to the U.S. Department of Education’s website.

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