The Supreme Court has agreed to decide whether the Biden administration can broadly cancel student loans, keeping the program blocked for now but signaling a final answer by early summer.
The justices didn’t do that, but agreed to the administration’s fallback, setting arguments for late February or early March over whether the program is legal.
More than 26 million people already applied for the relief, with 16 million approved, but the Education Department stopped processing applications last month after a federal judge in Texas struck down the plan. In a separate lawsuit filed by six states, a three-judge panel of the 8th U.S. Circuit Court of Appeals in St. Louis also put the plan on hold, and that case is before the Supreme Court.
Conservative attorneys, Republican lawmakers and business-oriented groups have asserted that Biden overstepped his authority in taking such sweeping action without the assent of Congress. They called it an unfair government giveaway for relatively affluent people at the expense of taxpayers who didn’t pursue higher education.
The law, the HEROES Act, allows the secretary of education to “waive or modify any statutory or regulatory provision applicable to the student financial assistance programs ... as the Secretary deems necessary in connection with a war or other military operation or national emergency.” The justices also will confront an important procedural question, whether anyone who has sued faces any legal or financial harm.
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