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Right After Biden Successfully Buys Votes With Student Loan Bailout, Supreme Court Will Weigh In

The Supreme Court will decide whether the Biden administration acted lawlessly when it authorized the cancellation of hundreds of billions of dollars in student loans. The high court announced on Thursday that it would expedite an appeal brought by the Biden administration challenging a lower court’s injunction freezing its loan “forgiveness” program, promising a hearing in February on the issues.

Until then, the Supreme Court will let stand the injunction the Eighth Circuit issued in Nebraska v. Biden. That injunction prevents the Biden administration from cancelling student loans of up to $20,000 per borrower, pending resolution of the legal challenge to the debt-forgiveness plan brought by six states: Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina.

In petitioning the Supreme Court for relief, the Biden administration initially sought an order vacating the Eighth Circuit’s injunction, but the administration argued alternatively that, if the high court declined to dissolve the injunction, it should instead hear the case on appeal on an expedited schedule. The Supreme Court’s decision to take the case on appeal presents a unique situation, given that the Eighth Circuit has not yet addressed the merits of the states’ lawsuit.

Come February then, the Supreme Court will need to decide whether the lower court erred in finding that the states lacked standing to challenge the Biden administration’s cancellation of student loans. The states present an array of arguments for why they had standing, or the legal ability to sue, with Missouri advancing the strongest argument for standing. (Read more from “Right After Biden Successfully Buys Votes With Student Loan Bailout, Supreme Court Will Weigh In” HERE)

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Biden Administration Fully Cancels Some Student Loan Debt After Reversing Trump Policy

The Department of Education took new steps last week to provide certain federal student loan borrowers complete debt relief. . .

Perhaps preparing to take even larger steps in the near future, the Education Department said student loan borrowers can apply for full debt cancellation if their college engaged in fraud or other financial misconduct.

The government estimates that $1 billion in student loans will receive “cancellation” as a result, which will benefit 72,000 borrowers.

“Borrowers deserve a simplified and fair path to relief when they have been harmed by their institution’s misconduct,” Education Secretary Miguel Cardona said. “A close review of these claims and the associated evidence showed these borrowers have been harmed and we will grant them a fresh start from their debt. . .

According to the Washington Post, the new policy reverses one implemented under former Education Secretary Betsy DeVos, and revives another implemented during the Obama administration. (Read more from “Biden Administration Fully Cancels Some Student Loan Debt After Reversing Trump Policy” HERE)

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