Current Events > Supreme Court keeps student loan relief program blocked, arguments set for Feb.

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https://www.cnn.com/2022/12/01/politics/supreme-court-student-loan/index.html

The Supreme Court said Thursday that President Joe Bidens student loan debt forgiveness program will remain blocked for now, but the justices agreed to hear oral arguments in the case in February, with a decision expected by June.

Bidens program would offer up to $20,000 of debt relief to millions of qualified borrowers, but it has been met with legal challenges since it was announced.

Nearly two weeks ago, the Biden administration began notifying people who are approved for federal student loan relief. About 26 million people had already applied to the program by the time it was frozen prompting the government to stop taking applications. No debt has been canceled thus far.

In the case at hand before the Supreme Court, a district court dismissed a challenge brought by a group of states, holding that they couldnt prove the legal injury necessary to bring the challenge. In November, the 8th US Circuit Court of Appeals reversed and blocked the program.

An erroneous injunction from a federal appeals court, Solicitor General Elizabeth Prelogar told the Supreme Court, leaves millions of economically vulnerable borrowers in limbo, uncertain about the size of their debt and unable to make financial decisions with an accurate understanding of their future repayment obligations.

She said that Biden acted in order to address the financial harms of the pandemic and smooth the transition to repayment in order to provide targeted debt relief to certain federal student-loan borrowers affected by the pandemic.

The program is designed to aid borrowers who are at highest risk of delinquency or default. Once debt cancellation begins, the plan could offer up to $10,000 in student loan debt relief to eligible borrowers making less than $125,000 ($250,000 per household.)

In addition, borrowers who received a Pell grant can receive up to $20,000 in relief.

As the Covid-19 pandemic began, the Department of Education paused payments and accrual of interest on student loans to help those who were struggling financially. Those payments were set to resume in January, but last week the Biden administration issued an extension due to the fact that his loan forgiveness program announced in August had come under multiple legal attacks.

As things stand, the payment pause will last until 60 days after the litigation over the loan forgiveness program is resolved. If the program has not been implemented and the litigation has not been resolved by June 30, payments will resume 60 days after that, according to the government.

The authority exists under the Higher Education Relief Opportunities for Students Act of 2003, or the HEROES Act, the administration argued. It said the law exempts the government from otherwise applicable procedural requirements, including notice-and-comment rulemaking.

A group of states, led by Nebraska, challenged the Biden policy, arguing that it violates the separation of powers and the Administrative Procedure Act, a federal law that governs the process by which federal agencies issue regulations.

In court papers lawyers for the states, Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina told the justices the program should remain on pause, especially because the Biden administration has announced an extension of the payment pause until 2023.

Nebraska Attorney General Douglas J. Peterson told the justices that Bidens debt relief program is an unlawful attempt to erase over $400 billion of the 1.6 trillion in federal student loan debt and eliminate all remaining loan balances for roughly 20 million of 43 million borrowers.

In a separate challenge, the 5th US Circuit US Court of Appeals on Wednesday night refused to lift a stay put in place by a district court judge blocking the program.

That challenge is brought by two individual borrowers Myra Brown and Alexander Taylor who are not qualified for full debt relief forgiveness and who say they were denied an opportunity to comment on the secretary of educations decision to provided targeted student loan debt relief to some.

The wild thing about this shit is that the people who are trying to block this have no skin in the game. It's literally just vindictiveness.

COVxy posted...

The wild thing about this shit is that the people who are trying to block this have no skin in the game. It's literally just vindictiveness.

that's why the federal judge gave it the go-ahead. these people are not injured because someone else gets free college. the end.

They're just evil and their only objective is to maximize human suffering

TaylorHeinicke posted...

That challenge is brought by two individual borrowers Myra Brown and Alexander Taylor who are not qualified for full debt relief forgiveness and who say they were denied an opportunity to comment on the secretary of educations decision to provided targeted student loan debt relief to some.

What absolute goddamn children.

such fucking 1984 bullshit.... so those jackasses think they deserve MORE money, but because they didn't get enough then EVERYONE should get ZERO money because...

ya know what im just gonna:

*closes eyes*

*opens mouth*

*releases the SCREAMING BEES*

They should extend the interest free bit until the decision has been reached. Resume minimum payments and add interest to late/missed payments if you have to but this pause is supposed to be up in a few weeks isnt it? Ill be furious if on the slim chance that the court allows it That I dropped 10k that was set to be forgiven for no reason.

One of these dumb bitches got $50k in PPP loans forgiven too.

Fucking hate conservatives.

DarthAragorn posted...

One of these dumb bitches got $500k in PPP loans forgiven too.

Fucking hate conservatives.

Fixed that for you

Trumps America

trumps corporate SC

COVxy posted...

The wild thing about this shit is that the people who are trying to block this have no skin in the game. It's literally just vindictiveness.

they don't want Democrats to help anyone and gain favor with voters. the GOP will literally block people from getting help because it's advantageous to them politically.

Makeveli_lives posted...

They should extend the interest free bit until the decision has been reached. Resume minimum payments and add interest to late/missed payments if you have to but this pause is supposed to be up in a few weeks isnt it? Ill be furious if on the slim chance that the court allows it That I dropped 10k that was set to be forgiven for no reason.

Biden extended it to June 2023

Education should be free.

June....

We have to wait til fucking JUNE??????

This should have been an easy decision. Wtf.

Now I really do doubt we will ever get that money. BS.

Ar0ge posted...

Now I really do doubt we will ever get that money. BS.

with a unbalanced super conservative justice court. very unlikely.

America is a dumpster fire where the poor are forced to subsidize the rich, but can't even get table scraps in return.