The Supreme Court has just announced that is now ready to hear arguments in litigation attempting to stop President Joe Biden’s student loan debt forgiveness program. Specifically, the Supreme Court will be hearing the case of Nebraska v. Biden, one of the two law suits that have temporarily stopped the debt forgiveness from taking effect.
Earlier in 2022, President Joe Biden announced the debt forgiveness plan which could forgive up to $20,000 to those who met certain criteria. Currently, due to the injunctions and litigation surrounding it, the application for the relief program has stopped accepting submissions, stating on the website that, “Courts have issued orders blocking our student debt relief program. As a result, at this time we are not accepting applications.”
Nebraska, joined by five other Republican-led states (Arkansas, Iowa, Kansas, Missouri, and South Carolina), argue that the plan will hurt their state tax revenues and state-based loan agencies. The states lost their motion for an injunction in the lower courts, but appealed in the Eighth Circuit, which ruled in favor of a temporary injunction.
The Department of Education currently contends that the program is protected under the HEROES Act; 2003 legislation that allows assistance programs for Americans who “suffered direct economic hardship as a direct result of a war or other military operation or national emergency”, citing the national public health emergency of COVID-19 as it’s basis.
The Supreme Court is expected to hear and rule on this case in Spring or early Summer 2023. Currently, Student Loan Repayments for Federal Loans remain paused while this case is being heard.