As the U.S. Supreme Court is set to hear arguments this week on legality of the president’s student loan forgiveness plan, the Education Department (ED), borrower advocates, and supporters of cancellation remain confident the law is on their side and litigation should result in a victory.
“If the U.S. Supreme Court applies the law, then student loan debt will be canceled,” Senator Elizabeth Warren (D-MA) said in a town hall sponsored by the Student Debt Crisis Center (SDCC). “What I’m afraid of is a Supreme Court that applies politics.”
However, opponents also argue politics on Biden’s administration.
“The Biden administration’s student loan bailout is a political gambit engineered by special interest groups,” Representative Virginia Foxx (R-NC), chairwoman of the Education and the Workforce Committee, said in a press release. "Abusing the HEROES Act for such a ploy is shameful."
If the highest court in the land strikes down the forgiveness plan, the Biden administration has shared no plan B beyond its already-announced 60-day extension of its payment pause for the millions of borrowers.
That means preparing for a worst-case scenario is necessary for borrowers.
Legal authority vs partisan politics
In the Texas case, Department of Education v. Brown, the Department of Justice (DOJ) argues that the HEROES Act expressly states that the Education Secretary has the authority to act in a national emergency — in this case, COVID-19 — to make sure borrowers are not left worse off...
stage at the Ninth Circuit, where pharmaceutical companies say a momentous new ruling "illustrates perfectly" the constitutional concerns of U. S. Supreme Court justices regarding FCA enforcement. ...