It may be too early for those with student debt to celebrate
Section 1098bb further provides that any waiver or modification must not act to worsen a student’s financial position under the loan. Thus, during the period of suspension, no interest will accrue on outstanding loans so that borrowers are in the same position as they were before the suspension period began.
The statute itself does not state that the education secretary may forgive student debt, and concomitantly, there are no provisions regarding the forgiveness of student debt in the regulations. The legislative history of HEROES is sparse — no committee reports, etc. — but the act’s sponsor, Rep. John P. Kline Jr.
Section 1082 in its entirety is found in Title IV, Part B, and applies exclusively to the FFEL program. Similar language appears in 20 U.S.C. section 1087hh applicable to Perkins loans. Sections 1087e and 1087a, which govern other federal direct loans, specifically the Ford, PLUS, and Stafford loans, do not contain waiver authority.
This is not so regarding the Biden administration’s student debt forgiveness for all other federal loans. The administration’s action, then, is clearly unconstitutional.The Biden administration’s forgiveness of student loans under the HEROES Act is certainly ripe for a court challenge. The section further authorizes the surgeon general to enforce the section through the “inspection, fumigation, disinfection, sanitation, pest extermination, destruction of animals or articles found to be so infected or contaminated as to be sources of dangerous infection to human beings.”
In this case, a potential litigant could be a debtor whose income exceeds the $125,000/$250,000 maximum by as little as $1, and who lives in an area where the income is considered middle class, such as San Francisco or New York City.
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