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Student loan debt is a problem many American citizens face, but President Joe Biden recently offered a student loan forgiveness policy.
However, on Wednesday, a group of Republican-led states argued that the policy should be put on hold while related lawsuits play out.
Additionally, they noted that the Biden administration had extended the suspension of student loan repayments.
The argument
Republican states received an appeals court order blocking the implementation of Biden’s student loan forgiveness program.
They said the extension showed the current court order would do no harm.
In a new filing, Republicans wrote:
“The Department [of Education] can point to no emergency or imminent harm because, just yesterday, the agency extended the payment pause on student loans until the summer of 2023.”
Payments pause
Federal student loan payments were due to resume this January after a one-year hiatus from the pandemic.
On Tuesday, however, the Biden administration said the hiatus would be extended to 60 days.
The extension will occur when the pending litigation on the program is resolved.
If the program is not implemented and the dispute is not resolved by June 30, payments will resume after 60 days.
The filing
Wednesday’s filing comes in response to a request by the Biden administration to ask the Supreme Court to lift the suspension of the student loan forgiveness program.
The program would void up to $20,000 in credit for individual borrowers who earned less than $125,000 in 2020 and 2021.
Republican states have also blamed the government’s reliance on the pandemic as an excuse to overshadow Biden’s goal of delivering on his campaign promise to pay off student loan debt.
Biden’s student loan policy was due to go into effect this fall.
However, the United States Court of Appeals for the 8th Circuit blocked it in a lawsuit filed by the following:
- Nebraska
- Missouri
- Arkansas
- Iowa
- Kansas
- South Carolina
Ruling
The Circuit alleges that Miguel Cardona, the Secretary of the Department of Education, had overstepped his authority.
Cardona forgave individual debts during the implementation of the program.
The Circuit also alleged that the department violated administrative law by launching the policy.
Additionally, states alluded to a Texas federal judge’s ruling in a separate case that overturned student loan policies.
The administration, in turn, filed an appeal with the US 5th Circuit Court of Appeals.
According to Wednesday’s filing, the ruling will remain in effect even if the Supreme Court decides to lift the suspension.
Meanwhile, the Biden administration proposes taking the case to the Supreme Court should the 5th Circuit allow the verdict to be overturned.
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The student loan program
US Solicitor General Elizabeth Prelogar argued in the Supreme Court petition that the program’s suspension leaves millions of economically vulnerable borrowers in limbo.
Additionally, people don’t know how much they owe.
As a result, they may not be able to make financial decisions without knowing their future repayment obligations.
Prelogar also explains that the program is a legal effort.
It ensures that borrowers affected by a national emergency are not in a worse situation with their student loans.
Reference:
GOP-led states press Supreme Court to keep Biden student debt forgiveness on hold
