On Tuesday, February 28, the Supreme Court will hear two lawsuits that contest President Joe Biden’s student loan forgiveness initiative. More than 40 million People could have up to $20,000 in debt canceled. Nearly half of those individuals might have all of their federal student debt forgiven, WDIV reported.
A total of 26 million people have already requested debt relief, and 16 million of those requests have been granted. Yet, all of the relief is halted as a result of court decisions. As a result of legal objections to the scheme, the Education Department halted accepting applications in November.
When it comes to whether Biden can fulfill a 2020 campaign promise to forgive student loan debt, the Supreme Court will have the final decision.
According to the plan Biden unveiled in August of last year, individuals or households making less than $125,000 or earning less than $250,000 would have their $10,000 in federal student loan debt forgiven. For a total of $20,000 in debt forgiveness, Pell Grant recipients, who often come from lower-income families, would receive an additional $10,000, the article added.
If a borrower’s federal student loans were disbursed prior to July 1, they are eligible.
Biden’s proposal has so far been thwarted by lower court judges who were selected by Republicans. Conservatives hold a 6-3 majority on the Supreme Court, but it is unclear how the justices will decide. Their inquiries at the oral arguments on Tuesday at 10 a.m. Eastern time will reveal what they are considering.
Although the Supreme Court is hearing arguments today, a ruling won’t be made for several weeks. Typically, the court renders all of its judgments by the end of June.
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