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, the secretary has the authority to take action.
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 against extending an eviction moratorium and invalidated an EPA effort to regulate power plant emissions. The court has emphasized the need for explicit authorization from Congress for such actions.
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 Biden administration has previously provided debt relief to borrowers in this situation.
It remains to be seen how the administration will proceed with its backup plan for student debt relief and whether it will withstand legal scrutiny.
What legal challenges could arise from the Biden administration’s reliance on the “compromise” provision of the Higher Education Act for student loan forgiveness?
Promise” provision of the Higher Education Act has rarely been used in the context of student loan forgiveness.
Legal experts suggest that Biden’s backup plan may invite legal challenges. They argue that the administration’s reliance on the “compromise” provision could be seen as an improper interpretation of the law. Critics also point out that the provision was originally intended for cases of extreme financial hardship or disability, rather than widespread student debt relief.
Moreover, opponents argue that forgiving student debt through executive action may infringe upon Congress’s authority to make decisions regarding federal spending. They argue that only Congress has the power to appropriate funds, and therefore, the president’s plan could be seen as an overreach of his executive authority.
The legal scrutiny surrounding Biden’s backup plan highlights the complexities of delivering student debt relief without congressional support. While the administration claims to have found a legal pathway to implement their campaign promise, it remains to be seen how successful they will be in navigating these legal challenges.
In the meantime, many student loan borrowers are eagerly awaiting relief and hoping for a resolution that will alleviate their financial burdens. Whether that relief will come through legislative action or executive action, the future of student debt remains uncertain.
President Biden’s pursuit of a new student debt relief plan is facing uphill battles in the form of legal challenges. While the intentions are commendable, it remains to be seen how these legal obstacles will impact the plan’s implementation and its ability to alleviate the burden on struggling students.