Opinion by Ruth Marcus: The court is actually hearing two challenges to the loan forgiveness plan — if the case raises the specter of an overreaching president abusing emergency powers, it also evokes fears of an imperial judiciary.
The court is actually hearing two challenges to the loan forgiveness plan — one brought by six Republican-controlled states, the other by borrowers who say it should have been more generous to them.that, the state contends, stands to lose money as a result of the forgiveness program. But do the states really get to barge into federal court to have the program overturned?U.S. solicitor general Elizabeth B. Prelogar acknowledged that MOHELA itself would have standing to sue — if it chose to do so.
Invoking the law to cancel student debt entirely — the Biden program would eliminate up to $10,000 of debt for those earning up to $125,000 annually, and another $10,000 for those who received income-based Pell grants — would be a step of a different magnitude, affecting more thanborrowers. “Never before has the Heroes Act been used to forgive a single loan,” Nebraska solicitor general James Campbell, arguing for the states, told the court.
The justices could find that the Biden plan goes beyond what the law permits: Does the authority to “waive” provisions of the law encompassdebt? If the law is supposed to prevent those affected by emergencies from being worse off, does forgiving loans go too far, especially because many who would benefit said they would have no trouble making repayments?Or, even if they find the language of the Heroes Act applies to cancellation, they could invoke their newly hatched “major questions” doctrine...
“I think most casual observers would say if you’re going to give up that much amount of money, if you’re going to affect the obligations of that many Americans on a subject that’s of great controversy, they would think that’s something for Congress to act on,” Chief Justice John G. Roberts Jr.
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