President Joe Biden’s backup plan for delivering student debt relief is likely to face legal scrutiny, according to experts. The plan, which was announced after the Supreme Court ruled against Biden’s initial proposal, raises questions about the administration’s ability to fulfill its campaign promise without the support of Congress.
The Supreme Court’s ruling stated that Biden exceeded his authority when he used the HEROES Act to forgive up to $20,000 in student debt. In response, Biden announced that he would pursue debt relief under the Higher Education Act of 1965, describing it as “legally sound” but acknowledging that it would take longer to implement.
The HEROES Act allowed the secretary of education to “waive or modify” loan terms, while the Higher Education Act permits the administration to “compromise” loans and forgive them in specific circumstances. However, the “compromise” language has traditionally been understood to give the department the power to reduce loans on a case-by-case basis, rather than as a blanket authority to forgive debt.
Experts have raised concerns about whether a similarly sweeping debt relief program would be supported under the Higher Education Act. They argue that the court is unlikely to reach a different result under language that is very similar to the HEROES Act.
Biden’s new proposal has not provided specific details, but he described it as “the best path that remains to providing for as many borrowers as possible with debt relief.” Some experts suggest that the administration could craft a narrower program to withstand legal scrutiny, although this may draw criticism from liberals within the party.
Supporters of Biden’s latest effort argue that the Higher Education Act clearly outlines the administration’s power to forgive debt. They point out that the provision of the law in question does not include limiting language, and therefore covers the actions that the secretary is contemplating.
The Supreme Court’s conservative majority has become increasingly skeptical of significant policies from federal agencies that do not have explicit approval from Congress. In previous cases, the court has ruled that certain actions exceeded the authority granted by Congress.
It remains to be seen how the administration will proceed with its debt relief plan and whether it will withstand legal scrutiny. The Higher Education Act does authorize certain forms of relief in specific situations, such as for borrowers who were defrauded by for-profit colleges.
How does the interpretation of the “compromise” language in the Higher Education Act impact the administration’s ability to implement a broad debt relief program
Legal experts are raising concerns about President Joe Biden’s backup plan for delivering student debt relief, as they believe it is likely to face legal scrutiny. The plan, announced after the Supreme Court ruled against Biden’s initial proposal, raises questions about the administration’s ability to fulfill its campaign promise without the support of Congress.
The Supreme Court ruled that Biden exceeded his authority when he used the HEROES Act to forgive up to $20,000 in student debt. In response, Biden announced his intention to pursue debt relief under the Higher Education Act of 1965, which he described as “legally sound,” but acknowledged that it would take longer to implement.
Under the HEROES Act, the secretary of education had the power to “waive or modify” loan terms, while the Higher Education Act allows the administration to “compromise” loans and forgive them in specific circumstances. However, the interpretation of the “compromise” language has traditionally been understood to grant the department the authority to reduce loans on a case-by-case basis, rather than as a blanket authority to forgive debt.
Experts argue that it is unlikely the court will have a different interpretation under the similar language of the Higher Education Act. They have concerns about whether a broad debt relief program would be supported under this act.
Biden has not provided specific details about his new proposal but has touted it as “the best path that remains to providing for as many borrowers as possible with debt relief.” Some experts suggest that the administration could narrow down the program to withstand legal scrutiny, although this may face criticism from liberals within the party.
Supporters of Biden’s latest effort argue that the Higher Education Act clearly outlines the administration’s power to forgive debt. They emphasize that the provision of the law in question does not include any limiting language, and therefore covers the actions that the secretary is considering.
The Supreme Court’s conservative majority has displayed skepticism towards significant policies from federal agencies that do not have explicit approval from Congress. Previous rulings of the court have declared certain actions as exceeding the authority granted by Congress.
It remains to be seen how the administration will proceed with its debt relief plan and whether it will withstand legal scrutiny. The Higher Education Act does authorize certain forms of relief in specific situations, such as for borrowers who were defrauded by for-profit colleges.
The legal questions and congressional challenges looming over Biden’s backup plan for student debt relief highlight the complexity of the issue. A careful and well-thought-out approach is necessary to ensure a fair and effective resolution for all parties involved.