After the Supreme Court blocked President Joe Biden’s first plan to forgive student debt, his administration set out to create a more viable relief…
After the Supreme Court blocked President Joe Biden's first plan to forgive student debt, his administration set out to create a relief package that would survive legal attacks.to forgive student debt last summer, his administration set out to create a relief package that would survive legal attacks.The majority-conservative court ruled that Biden didn't have the authority to erase $400 billion in student debt without prior authorization from Congress.
This time, the Biden administration has narrowed its aid by targeting specific groups of borrowers, including those who've been in repayment for decades or attended schools of low-financial value. It hopes this will help the plan survive in front of a court that is skeptical of broad loan cancellation, experts say.
As a result, for critics of broad student loan forgiveness, Biden's new plan looks a great deal like his first.In addition to the fact that this effort is a more targeted aid program, the U.S. Department of Education is also using a different law — the Higher Education Act — as its legal justification. Biden's first forgiveness plan was based on the Higher Education Relief Opportunities for Students Act, or HEROES Act of 2003.
The HEROES Act was passed in the aftermath of the 9/11 terrorist attacks and grants the president broad power to revise student loan programs during national emergencies. The Biden administration initially tried to use this law because, at the time, the country was under a national emergency status from the Covid-19 pandemic.
"Also, historically, the courts have given some deference to federal agencies with regard to regulatory authority," Kantrowitz said."That doesn't mean the court won't block new regulations, just that they are less likely to do so."
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