the cancellation of the debt of millions of American students at stake in the Supreme Court – Liberation

The case presents huge and high-risk economic stakes for Joe Biden. The Supreme Court of the United States is examining this Tuesday a flagship measure by Joe Biden aimed at canceling part of the colossal student debt. In a highly anticipated hearing, the nine judges of America’s highest judicial authority will question administration officials who want to lighten the slate of millions of borrowers, and critics of this program who denounce a costly abuse of power. .

Their judgment, expected before June 30, will have a direct impact on the finances of former students but not only: the high court, firmly anchored in conservatism, could take advantage of this file to limit the president’s room for maneuver. During the hearing, the judges will have to juggle crazy sums: nearly 43 million Americans have federal student loans to repay for a total amount of 1.63 billion dollars (1,535 billion euros) .

“Give a breath of fresh air to tens of millions of Americans”

At the start of the Covid-19 pandemic, as the economy went into hibernation, President Donald Trump’s administration suspended the repayment of such credits under a 2003 law allowing for “relieve” student debt holders in case of“national emergency”. This measure has been continued without interruption until now.

At the end of August 2022, Joe Biden, who defines himself as a champion of the working classes, wanted to go further: he announced that he would erase $10,000 from the slate of borrowers earning less than $125,000 a year, and $20,000 for former fellows. The candidates rushed and 26 million applications were filed, according to the White House, which estimates the overall bill for the state at 400 billion dollars. Justice, however, blocked the implementation of this plan after being seized by a coalition of Republican states, but also by two students not eligible for the 20,000 dollar discount.

The plaintiffs accuse the Democratic administration of having exceeded its powers under the pretext of the pandemic and of having committed taxpayers’ money without consulting parliamentarians. For them, the 2003 law covers the freezing of the debt and not its cancellation. “The Court must again prevent the government from invoking Covid-19 to seize power far beyond what Congress could have conceived,” wrote the State of Nebraska and its allies in an argument sent ahead of the hearing. “We are sure we have the legal authority” to act, retorted Monday the spokeswoman for the White House, Karine Jean-Pierre, recalling that the purpose of the program was to “to breathe life into tens of millions of Americans”.

In an attempt to avoid a snub from the Supreme Court, the Democratic government asserts that the plaintiffs were not entitled to take legal action since they did not “suffered no harm”. He asks the court to dismiss their complaint on this basis, without ruling on the merits.