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SCOTUS Agrees To Hear Second Challenge To Biden’s Student Loan Plan

The Supreme Court agreed on Monday to hear a second case challenging the Biden administration’s student loan forgiveness plan.
by Alexa Schwerha

The Supreme Court agreed on Monday to hear a second case challenging the Biden administration’s student loan forgiveness plan.

The case, which originally succeeded in blocking the administration’s plan to cancel up to $20,000 per borrower, will be heard in February, according to the court document.

It was first filed in Texas by student loan borrowers Myra Brown and Alexander Taylor, who sued after not being included in the debt-forgiveness plan.

The U.S. Department of Justice (DOJ) appealed the decision by the Texas federal judge to block the Biden administration’s student loan plan from going forward. Still, the request was denied by the U.S. Court of Appeals for the Fifth Circuit on Nov. 30.

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The DOJ then asked the Supreme Court to take up the case and also to lift the hold on the plan; the latter request was denied.

Both parties were instructed to argue “whether respondents have… standing” to bring the case to the Supreme Court and if “the Department’s plans statutorily authorized and was adopted in a procedurally proper manner,” according to the document.

The Supreme Court originally agreed on Dec. 1 to hear a challenge from six Republican states against the Biden administration’s proposal. The states claim that it would hurt their tax revenues. The challenge was issued by Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina, all of which are listed as plaintiffs in the first case.

Biden’s student loan forgiveness plan was released in August and would reportedly partially cancel student debt for 40 million borrowers. Borrowers who received Pell Grants were eligible for $20,000 in relief, while the plan canceled $10,000 for those not on Pell Grants. It applied to borrowers who made less than $125,000.

Student loan repayments are currently on pause and will remain so until 2023, NPR reported. Borrowers will be expected to return to making payments 60 days after the program is reinstated, or 60 days after June 30 depending on the legal ruling.

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