Biden Goes to Supreme Court Attempting to Keep His Student Loan Forgiveness Plan Alive

In the last two weeks, two Courts have effectively halted Biden’s student loan relief which promised between $10,000 and $20,000 dollars to student loan borrowers making under $125,000. While the Biden Administration argues that the debt relief falls under a 2003 federal law known as the Higher Education Relief Opportunities for Students Act, the 8th Circuit and a federal judge in Texas disagree.

The Texas federal judge struck down the program on the grounds that Biden’s student loan forgiveness infringed on Congress’ power. The 8th Circuit Court of Appeals issued an injunction because the forgiveness would financially harm state loan providers that rely on student loan payments and interest for profits.

Today, November 18, 2022, the DOJ filed a request for the Supreme Court to urgently address the matter as students await loan repayments beginning in early 2023.

If the Supreme Court accepts Biden’s filing, the case will be fast-tracked and addressed by the Supreme Court itself, superseding lower courts’ decisions. Even if the Supreme Court grants access to the merits docket, the Court will have to hear oral arguments and issue a ruling which would take several months. It is increasingly unlikely that borrowers will receive any relief before loan repayments return in early 2023.