Biden administration to ask Supreme Court to reinstate student loan relief plan

Biden administration to ask Supreme Court to reinstate student loan relief plan

The Justice Department indicated Thursday it will ask the Supreme Court for a reauthorization of a Biden administration plan, which would allow millions of Americans to get student loan forgiveness. This is after the plan was blocked by two federal court rulings.

On Monday, the 8th Circuit Court of Appeals became the latest to block the Biden administration’s debt relief program. The Biden administration stated in a Thursday filing that it will appeal the decision to the Supreme Court.

“The government plans to file a request with the Supreme Court for a stay of an injunction against Secretary’s action that was entered by the Eighth Circuit earlier in the week,” the Justice Department court filing states.

The disclosure was made in a filing for a separate case appealing a Nov. 10 ruling from a federal judge in Texas who also blocked the student loan relief plan, calling it “unlawful.” The Biden administration has asked the 5th Circuit Court of Appeals for a stay of the Texas judge’s decision.

On Nov. 11, the Biden administration announced that it had stopped taking applications for the relief program in response to the Texas judge’s ruling. The Education Department said it will hold the applications for the roughly 26 million people who have already applied for forgiveness.

The ruling of the 8th Circuit Court of Appeals was in response to a joint lawsuit filed by six Republican-led States that argued that the Biden administration had exceeded its executive powers. The Texas judge’s decision was in response to a lawsuit brought by the Job Creators Network Foundation, a conservative group that argued that the Biden administration had violated federal procedures by not seeking public input on the program.

President Biden announced in August that his administration is canceling up to $20,000 in student loan debt for millions of Americans. Nearly 20 million people will be eligible to have their debt fully canceled under the new plan.

Borrowers who received Pell Grants, aid for eligible low- and middle-income families, can get as much as $20,000 in debt forgiven, while other borrowers can get relief of up to $10,000.

Only individuals who earned less than $125,000 in 2020 or 2021 and married couples with total annual income below $250,000 are eligible for loan relief under the program.

Caroline Linton and Aimee Picchi contributed reporting.

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