US Supreme Court Considers Proposal for Partial Discharge of Student Debt

The cancellation of part of the US student debt, announced by President Joe Biden last summer, could be blocked this Tuesday, February 28, by the Supreme Court.

The highest court in the country, controlled by six conservative and three liberal judges, is studying the demand of six red states – Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina – and two individuals to stop the plan. They question the Administration’s authority to cancel these federal loans.

President Biden announced in August the program that seeks to ease the financial burden of student loans. He proposed a $10,000 exemption for borrowers earning less than $125,000 a year, and $20,000 for former scholars. The White House received 26 million applications and estimates the global bill for the State at 400,000 million dollars.

“This help is crucial for more than 40 million Americans recovering from the economic crisis caused by the pandemic,” Biden recalled in a tweet just before the hearing, showing his “confidence in the legality” of his plan.

However, according to Republicans, the move represents an excess of Biden’s executive authority.

“If you’re going to affect the obligations of so many Americans on an issue that’s very controversial, they’d think it’s something for Congress to act on,” Chief Justice John Roberts said.

A point of view shared by the Chamber of Commerce, which wrote: “This case is timely and offers an opportunity to strengthen constitutional safeguards to prevent administrative bodies and branches of the Executive branch from exercising legislative functions (…) they cannot make decisions important policies without the explicit approval of Congress,” they remarked.

For his part, Biden argues that the plaintiffs did not have the right to file the petition because “they did not suffer any prejudice” and asked the Court to dismiss the lawsuit for the form, without ruling on the merits.

The 2003 law provides for the freezing of the debt, not its cancellation

When the pandemic began, the administration of former Republican President Donald Trump suspended student loan repayments under a 2003 law.

This law, known as the HEROES Act, allows the Secretary of Education to waive or modify the terms of federal student loans in the event of a “national emergency.”

The legislation was created during the war in Afghanistan and Iraq so that the military could benefit from financial support while fighting abroad.

Since the pandemic, the measure has been extended without interruption, until Joe Biden decides to permanently cancel part of the debts.

However, two students, as well as a coalition of Republican states, argue that the 2003 law allows for the freezing of debt, but not its cancellation.

Of the two individuals who sued, one has a commercially held student loan and the other is entitled to debt relief of $10,000, but not the maximum of $20,000.

“No person should have to deal with this”

On Monday night, dozens of defaulters arrived from across the country to camp near the courthouse. Among them, Sinyetta Hill, 22, who would benefit from an almost total cancellation of the $20,000 she owes.

“I was 18 years old when I enrolled in college. I didn’t know it was going to be such a burden. No student should have to deal with this. No person should have to deal with this,” Hill said.

This Tuesday, the demonstrations near the Supreme Court continued with people holding signs indicating “Relief borrowers is legal” and “Cancel student debt.”

Many students support Biden’s decision, as it would allow them to alleviate a huge financial burden.

“I have student loan debt, which is going to be $143,000 when I graduate in May. And Biden’s plan for student loan relief will help me tremendously because I come from a low-income family and have to pay tuition outside of school.” so having this opportunity will definitely help me grow and prosper in the future,” confided LyAsia Monroe, a senior at Virginia State University.

For his part, Bernie Sanders also called on the Supreme Court to support the measure.

“Today we say to the Supreme Court: listen to the needs of millions of struggling people, people who want a middle-class life, but are saddled with debt. Do the right thing. Support Biden’s proposal, cancel student debt,” said the senator and former presidential candidate.

Higher education is very expensive in the United States, and nearly 43 million Americans have federal student loans totaling $1.63 trillion.

With AFP and AP