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U.S. Supreme Court announces it will hear arguments on Biden administration’s student loan forgiveness plan

December 5, 2022 at 9:23 AM

The U.S. Supreme Court on December 1 said it will hear oral arguments in a lawsuit filed by six states over the Biden administration’s plan to forgive up to $20,000 of federal student loan debt per borrower in February.

The announcement came after Solicitor General Elizabeth Prelogar asked the court on November 18 to lift the U.S. Court of Appeals for the Eighth Circuit’s pause on the plan. The appeals court initially blocked the plan on October 21 and extended the pause on November 14.

The six states (Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina) filed a joint lawsuit against the Biden administration on September 29. The states alleged the administration overstepped its executive authority under the HEROES Act. The states also argued that the Department of Education was legally required to collect student loans and could not stop collecting without congressional approval. They also alleged the administration’s forgiveness plan would harm their investments and reduce their tax revenues, which was, in their view, a sufficient basis to sue.

If the forgiveness plan survives court challenges, it would cancel $10,000 in student loan debt per person for individual tax filers making less than $125,000 or married filers with less than $250,000 in income. Pell Grant recipients are eligible to have an additional $10,000 forgiven under the plan.

Additional reading:

Appeals court extends block of Biden administration’s student loan forgiveness plan

By James McAllister

In Breaking News

November 18, 2022 at 11:43 AM

The U.S. Court of Appeals for the Eighth Circuit on November 14 extended its pause on the Biden administration’s plan to forgive up to $20,000 of federal student loan debt per borrower. The court initially blocked the plan on Oct. 21, and forgiveness will remain frozen until the court reviews an appeal from six states suing the administration. The states argue the executive branch does not have the power to forgive student loans without the approval of Congress.

The appeal came after U.S. District Judge Henry Autrey ruled on Oct. 20 that the states did not sufficiently demonstrate that the forgiveness plan harmed them, so they did not, in his view, have the standing to sue. The states argued that the administration’s forgiveness plan would harm their investments and reduce their tax revenues, which was, in their view, a sufficient basis to sue.

The six states (Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina) filed a joint lawsuit against the Biden administration on September 29. The states alleged the administration overstepped its executive authority under the HEROES Act. The states also argued that the Department of Education was legally required to collect student loans and could not stop collecting without congressional approval.

Of the six states, five have Republican trifectas and one (Kansas) has a divided government. All of the states except Iowa have Republican attorneys general.

If the forgiveness plan survives court challenges, it will cancel $10,000 in student loan debt per person for individual tax filers making less than $125,000 or married filers with less than $250,000 in income. Pell Grant recipients are eligible to have an additional $10,000 forgiven under the plan.

Additional reading:

State responses to federal mandates

Court cases related to federalism

Legislation related to federalism

Appeals court temporarily blocks Biden administration’s student loan forgiveness plan

By James McAllister

In Breaking News

November 7, 2022 at 8:39 AM

The U.S. Court of Appeals for the Eighth Circuit on Oct. 21 temporarily blocked the Biden administration’s plan to forgive up to $20,000 of federal student loan debt per borrower. The forgiveness will remain frozen until the court reviews an appeal from six states suing the administration. The states allege the executive branch does not have the power to forgive student loans without the approval of Congress.

The appeal came after U.S. District Judge Henry Autrey ruled that the states did not sufficiently demonstrate that the forgiveness plan harmed them, so they did not, in his view, have the standing to sue. The states argued that the administration’s forgiveness plan would harm their investments and reduce their tax revenues, which was, in their view, a sufficient basis to sue.

The six states (Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina) filed a joint lawsuit against the Biden administration on September 29. The states alleged the administration overstepped its executive authority under the HEROES Act. The states also argued that the Department of Education was legally required to collect student loans and could not stop collecting without congressional approval.

Of the six states, five have Republican trifectas and one (Kansas) has a divided government. All of the states except Iowa have Republican attorneys general.

If the forgiveness plan survives court challenges, it will cancel $10,000 in student loan debt per person for individual tax filers making less than $125,000 or married filers with less than $250,000 in income. Pell Grant recipients are eligible to have an additional $10,000 forgiven under the plan.

Additional reading:

Trial held in six-state lawsuit against Biden administration student loan forgiveness

By James McAllister

In Breaking News

October 19, 2022 at 10:55 AM

James Campbell, a lawyer from the Nebraska Attorney General’s office, represented six states in a trial on October 12 to block the Biden administration’s plan to forgive up to $20,000 of federal student loan debt in the United States District Court for the Eastern District of Missouri.

Campbell argued that the administration’s proposal would harm the investments and tax revenues of the states he was representing. He also argued the Department of Education did not have the authority under the Health and Economic Recovery Omnibus Emergency Solution (HEROES) Act to forgive federal student loan debts.

Brian Netter, the lawyer representing the U.S. Department of Justice, argued that the HEROS Act was designed to allow the executive branch to provide relief related to the coronavirus pandemic. He said increased late debt payments among student loan borrowers justified the forgiveness plan under the law.

U.S. District Judge Henry Autrey is presiding over the case and has not yet released a decision.

Six states (Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina) filed a joint lawsuit against the Biden administration on September 29. The states alleged the administration overstepped its executive authority and was “not remotely tailored to address the effects of the pandemic on federal student loan borrowers.” The states also argued that the Department of Education was legally required to collect student loans and could not stop collecting without congressional approval.

Of the six states, five have Republican trifectas and one (Kansas) has a divided government. All of the states except Iowa have Republican attorneys general.

If the forgiveness plan survives court challenges, it will cancel $10,000 in student loan debt per person for individual tax filers making less than $125,000 or married filers with less than $250,000 in income. Pell Grant recipients are eligible to have an additional $10,000 forgiven under the plan.

Additional reading:

Court cases related to federalism

Legislation related to federalism

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