The Supreme Court just set a date to hear Biden's student-loan forgiveness case, which will decide the fate of millions of borrowers
. The other lawsuit was filed by two student-loan borrowers who sued because they did not qualify for the full $20,000 of relief.
Two lower courts that received each of those cases ruled that Biden's loan forgiveness plan should remain on pause until the Supreme Court makes a final decision on the legality of the relief.: Whether the Republican-led states that filed the lawsuit have standing, and whether Biden's plan to cancel student debt exceeds the Education Secretary's authority or is"arbitrary and capricious.
The question of authority has loomed over Biden's debt relief plan even before he officially announced it. Biden used the HEROES Act of 2003 to cancel student debt, which gives the Education Secretary the ability to waive or modify student-loan balances in connection with a national emergency, like COVID-19.
But the lawsuits, along with some Republican lawmakers, have argued that Biden overstepped the authority granted under the HEROES Act, and enacting broad debt relief should require Congressional approval. While Biden's administration has maintained confidence it will prevail in court, some advocates and Democratic lawmakers have argued he could use the Higher Education Act of 1965 instead to forgive student loans, which would not require the existence of a national emergency.
For now, millions of borrowers remain in limbo as they wait for a Supreme Court ruling. Biden recently announced anof the student-loan payment pause as a result of the lawsuits through June 30 or whenever the lawsuits are resolved — whichever comes first. But should Biden's broad debt relief plan ultimately get struck down, it's unclear at this point what would come next for borrowers.
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