Earlier this year, just after applications opened for the student debt-relief program that the Biden administration has been campaigning for, a temporary hold was placed on the program’s fund disbursement while lower courts reviewed cases against the program. After the cases were dismissed by these courts, things seemed to be on course to progress, but now another hold has been placed on the program. As of Thursday, the program was halted by the Supreme Court until further notice, as the circuit agreed to hear the arguments against the relief program.
The program, which would have provided up to $20,000 in aid to middle and lower-income borrowers for repaying their student loan debts, is now under fire. The Biden administration had petitioned for the court to enable the program’s progression while lower courts dealt with legal challenges. Despite this, though, the Supreme Court has agreed to hear out the voices against the program in February of 2023.
The voice of opposition comes from a Republican-led coalition of states. The states that have banded together to challenge the program include the states of Arkansas, Iowa, Nebraska, Kansas, South Carolina, and Missouri. The states argued that the Department of Education does not hold the legal authority to cancel out the loans. Their plea is that canceling the student loans in their states would harm loan collection organizations, thus harming their state economies. They also claim that the Biden Administration is using the Pandemic as an excuse or pretext to fulfill a campaign promise.
Their case was originally dismissed by the district court on the grounds that the states had not suffered a great enough loss or injury to condone the lawsuit. However, the Eighth Circuit Court of Appeals feels differently, as they’ve agreed to hear the arguments against the program next year. In the meantime, the program will remain on hold until a decision and plan of action are made. It looks like borrowers can expect to wait at least another two months before the news about whether or not they will receive any relief.
