Supreme Court to decide on Biden’s student loan forgiveness soon. What’s next?
The Supreme Court could rule on student loan forgiveness this week and new rulings from the court might indicate which way the court is leaning.
Here’s what you should know.
How did we get here?
Earlier this year, the Supreme Court, with 6-3 conservative majority, heard two cases challenging President Joe Biden’s student loan forgiveness program, that would forgive up to $10,000 in federal student loans or $20,000 for Pell Grant recipients.
Twenty-six million people applied for the program before it was suspended. The lawsuits claimed the parties would be harmed and that the program overstepped authority, Forbes reported. The Biden administration says the cases should be thrown out because they don’t have the standing to begin with.
That’s going to be a key point.
One case was brought by two student loan borrowers who didn’t qualify for the full $20,000 in relief. The other was brought by six Republican states arguing it would hurt state tax revenues — and the revenue of Missouri-based student loan company MOHELA. They have to provide proof that the policy would injure them, that the injury is because of the defendant, and that the relief they want would address that.
Last week, the Supreme Court —with opinions authored separately by Justices Amy Coney Barrett and Brett Kavanaugh — found two cases didn’t have the legal standing, Business Insider reported.
Still, justices have been examining potential executive overreach. So it’s unclear how the court will rule.
What’s next?
We could see a decision as soon as Tuesday, June 27, though Forbes reported the court could extend its term, which wraps up in June.
Even if it’s upheld, we don’t know when it would officially start back up and when people could see their loans forgiven.
Currently, student loan payments will be due starting in October, according to the federal education department. Interest starts accruing again on Sept. 1.
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This story was originally published June 26, 2023 at 6:01 PM with the headline "Supreme Court to decide on Biden’s student loan forgiveness soon. What’s next?."
