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Update on Student Loans: One Doctrine May Riddle Biden’s Relief Plan

President Joe Biden’s plan for student Loan relief could be invalidated by the Supreme Court if certain lines of questioning are used.

On Tuesday, the Supreme Court judges will hear oral arguments in the legal dispute involving the president’s expansive $400 billion debt relief plan. Legal experts told media sources like USA Today that the issue involves significant debates regarding the scope and boundaries of the president’s and the Supreme Court’s authority, as well as political and economic considerations about loan forgiveness.

The “Major Issues Doctrine,” a strategy the Supreme Court has employed in the past, calls for federal courts to overturn attempts by government agencies to establish significant policies without the consent of Congress. The notion can be used to justify laws, actions, and policies that have a major influence on the economy or have broad political implications. For instance, the Environmental Protection Agency’s (EPA) attempt to control power plant emissions was rejected by the Supreme Court last summer.

The White House has countered that the “Major Questions Doctrine” does not apply to Biden’s loan forgiveness proposal because, according to federal law, the government is permitted to change loan laws in response to emergencies that have a negative impact on Americans’ ability to pay their bills, such as the COVID-19 pandemic.

Others, however, contend that the law does not expressly mention the power to “forgive” loans, as Biden’s proposal stipulates. According to Christopher Walker, a professor at the University of Michigan Law School, should the doctrine be used, it would be difficult to imagine the Supreme Court upholding the plan.

Walker remarked, “It’s teed up fairly well.” It’s quite difficult to avoid the conclusion that the Biden administration is using an outdated law that was created to address a different issue in a very broad, sweeping manner.

After pledging to address the topic during the 2020 campaign, Biden first presented his eagerly anticipated plan for Student Loan Forgiveness last year. The majority of borrowers would be qualified for a $10,000 forgiveness of their existing debt under the plan, while those who got a Pell Grant, a federal assistance program for students from lower-income families, would be qualified for a $20,000 forgiveness.

Republicans, who have long opposed any sort of student loan forgiveness, criticized Biden’s proposal and said that his administration had exceeded its power by making the decision without consulting Congress. Six Republican-controlled states—Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina—filed lawsuits challenging the plan, which resulted in a federal judge temporarily blocking it in October and setting it up for appeal to the Supreme Court.

By year’s end, the Court is expected to rule on the scheme. Since the beginning of the outbreak, student loan payments have been paused several times. They are currently scheduled to resume on June 30, barring any further delays from Biden.

The post Update on Student Loans: One Doctrine May Riddle Biden’s Relief Plan appeared first on US Crime online.



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