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President Joe Biden’s plan to cancel $400 billion in student debt faced skepticism from the majority of the U.S. Supreme Court justices during oral arguments on Tuesday. The justices appeared to doubt whether Biden had the authority to cancel the debt under the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act), which allows waivers and modifications of student-aid programs during national emergencies. Biden has asserted that the COVID-19 pandemic was such an emergency.
As many as 40 million borrowers were expected to qualify for relief under the program. Still, Chief Justice John Roberts suggested that the HEROES Act didn’t provide sufficient authority for such wide-reaching changes. Roberts stated that most casual observers would say that giving up that much money and affecting the obligations of that many Americans on a subject of great controversy would require Congress to act.
The Supreme Court is considering two challenges to Biden’s plan. Six Republican-led states filed one, and the other was filed by two people who say they are being unfairly excluded from the program or ineligible for the highest level of relief.
Biden’s program allows debt forgiveness on up to $10,000 in federal student debt for individuals who make less than $125,000 per year or less than $250,000 per year in their household. Those who received Pell Grants would be eligible for up to $20,000 in debt relief.
According to the Washington Post, the “best hope” for the Biden administration would be a finding that none of the plaintiffs has standing to challenge the program. However, it seemed likely there would be a majority on the court ready to move on to the merits of the cases.
One issue in the case is whether the “major questions” doctrine prevents Biden from acting. The doctrine says federal agencies can’t act on questions of vast economic or political significance absent clear direction from Congress. Arguing for the United States, U.S. Solicitor General Elizabeth Prelogar said the essential questions doctrine doesn’t apply when the government provides benefits rather than imposing regulations. However, Justice Samuel Alito pushed back on the assertion, stating that Prelogar’s distinction presumes that, when it comes to the administration of benefits programs, a trillion dollars here, a trillion dollars there doesn’t make that much difference to Congress, which he believes doesn’t seem very sensible.
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Most Supreme Court justices appeared skeptical of Biden’s plan to cancel $400 billion in student debt under the HEROES Act. They questioned whether Biden had the authority to cancel the debt and suggested that such wide-reaching changes would require Congress to act. The court is considering two challenges to Biden’s plan, and it remains to be seen whether the “major questions” doctrine will prevent Biden from acting.
