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.
What concerns do experts have about whether a sweeping debt relief program would be supported under the Higher Education Act and how does it relate to the Supreme Court’s ruling
President Joe Biden’s plan for delivering student debt relief is expected to face legal scrutiny, according to experts. After the Supreme Court ruled against Biden’s initial proposal, he announced a backup plan that raises questions about the administration’s ability to fulfill its campaign promise without congressional support.
The Supreme Court’s ruling stated that Biden exceeded his authority by using 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, claiming it was “legally sound” but acknowledging it would take longer to implement.
While the HEROES Act allowed the secretary of education to “waive or modify” loan terms, the Higher Education Act permits the administration to “compromise” loans and forgive them in specific circumstances. However, experts argue that the “compromise” language traditionally gives the department the power to reduce loans on a case-by-case basis, rather than a blanket authority to forgive debt.
These experts express concerns about whether a similar sweeping debt relief program would be supported under the Higher Education Act. They believe the court is unlikely to reach a different result under language that closely resembles the HEROES Act.
Although Biden’s new proposal lacks specific details, he described it as “the best path that remains to providing for as many borrowers as possible with debt relief.” Some experts suggest the administration could create a narrower program to withstand legal scrutiny, but this may face criticism from progressive members of 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 in question does not include limiting language and therefore covers the actions the secretary is considering.
The Supreme Court’s conservative majority has shown skepticism towards significant policies from federal agencies that lack explicit approval from Congress. In previous cases, the court has ruled that certain actions exceeded the authority granted by Congress.
It remains uncertain how the administration will proceed with its debt relief plan and whether it will withstand legal scrutiny. The Higher Education Act does provide for specific forms of relief in certain situations, such as for borrowers defrauded by for-profit colleges.
Biden’s student debt relief plan faced a major hurdle with the Supreme Court setback, amplifying concerns over its legal viability. As the proposal prepares for legal scrutiny, the fate of millions of borrowers hangs in the balance.
Biden’s plan for student debt relief faces an uphill battle amidst legal scrutiny following the recent Supreme Court setback. It remains to be seen how the administration will tackle this challenge, but finding a solution that benefits both students and the legal requirements will be crucial.