SCOTUS Won't Hear Attempt to Block Student-Loan Relief
On Thursday, SCOTUS refused to hear a Wisconsin taxpayers group’s attempt to block Biden’s student-loan forgiveness program while litigation against the program proceeds in a lower court. Justice Amy Coney Barrett issued the rejection.
Facts
- On Thursday, SCOTUS refused to hear a Wisconsin taxpayers group’s attempt to block Biden’s student-loan forgiveness program while litigation against the program proceeds in a lower court. Justice Amy Coney Barrett issued the rejection.
- Biden’s plan cancels $10K in debt for those earning less than $125K per year, or $250K as a household. Those who received Pell grants can have up to $20K forgiven. The plan is estimated to cost $379-$400B over the life of the program.
- The Wisconsin-based Brown County Taxpayers Association sued to stop Biden from moving forward with his plan because it would lead to “a gargantuan increase in the national debt” and allegedly exceeds the president’s spending authority. A US district judge threw out the case based on a lack of standing by the plaintiffs, and an appeals court refused to hear the case before it was put before SCOTUS.
- Not long after the SCOTUS ruling, a federal judge ruled that a group of six Republican-led states – Missouri, Nebraska, Arkansas, Iowa, Kansas, and South Carolina – lacked standing to make a similar legal challenge to the student-debt relief program. The states intend to appeal.
- In the second case, the Biden admin. argued that the education secretary has authority under the 2003 Higher Education Relief Opportunities for Students (HEROES) Act to waive or modify federal student loans during war or national emergency.
Sources: Scotusblog, New York Times, and Washington Times.
Narratives
- Democratic narrative, as provided by AlterNet. There are so many problems with these lawsuits — starting with the fact that under the HEROES Act there’s no denying the Biden admin. has the authority to enact this plan. Then there’s the claim that having to pay taxes is the harmful reason for filing suit, which historically has been rejected by the courts. Republicans are clogging up the courts to stop Biden from celebrating a victory.
- Republican narrative, as provided by Townhall. One failed attempt to block Biden’s student-loan handout is far from the end of this story. There are several other legal challenges to this program, and eventually one of them will land at SCOTUS, where the 6-3 conservative majority will have its say. American taxpayers shouldn't have to bail out student borrowers.
