Biden government will ask the Supreme Court to authorize its student debt plan

Biden government will ask the Supreme Court to authorize its student debt plan

The Justice Department said it will ask the Supreme Court to reinstate Biden’s student debt relief program.

The Department of Justice (DOJ) indicated in a court filing on Thursday that it plans to ask the Supreme Court to reinstate the Biden administration’s student debt relief program, according to CNN.

“The government will file a motion with the Supreme Court to vacate a separate injunction against the Clerk’s action filed by the Eighth Circuit earlier this week,” the Justice Department said in the filing with the Fifth Circuit Court of Appeals. , referring to the administration requesting to put on hold a ruling by a trial judge overturning the policy.

In addition to that lower court decision, the 8th Circuit Court of Appeals blocked the policy.

The Justice Department noted in the new filing that it can appeal both cases to the Supreme Court.

“We trust our legal authority to carry out this program, and we will take this fight to the Supreme Court so that borrowers can get the clarity and relief they deserve quickly,” White House spokesman Abdullah Hasan said. it’s a statement. “President Biden will never stop fighting to bring help to working and middle class Americans.”

The Biden administration has faced several legal challenges to the student loan forgiveness program since it was announced in August and court action will have to play out before it can discharge any federal student loan debt under the program.

Under program rules, eligible low- and middle-income borrowers can receive up to $10,000 in federal student loan forgiveness and up to $20,000 in cancellation if they also received a Pell Grant while enrolled in college.

Keeping debt relief on hold would leave the government with an “unnecessarily dangerous option,” the administration argued in its filing.

If the government restarts student loan payments as planned on January 1, millions of Americans will be billed for debt that was promised to be paid off. But if the government extends the payment pause, it will cost the government billions of dollars in lost revenue, according to The Associated Press.

As the legal fight continues, the Biden administration is barred from applying the student debt forgiveness program.

Ben Oakley
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