The $400 billion plan to forgive student loans by President Joe Biden was challenged again by the Supreme Court on Monday. In February, the high court will look at two programme issues as the government tries to bring back a plan that could affect 40 million Americans with student debt.
In the most recent case, the U.S. Court of Appeals for the 5th Circuit in New Orleans upheld a lower court’s decision to stop the programme from being used because it was illegal. The government of Vice President Joe Biden put off paying back student loans until June 30, 2023.
The conservative Job Creators Network Foundation filed the case. This nonpartisan group was started by business owners who believe that well-informed citizens are the best defence against bad government policies. On November 10, U.S. District Judge Mark Pittman put an end to the debt relief plan all over the country.
The U.S. Court of Appeals for the 8th Circuit in St. Louis, which stopped the loan forgiveness programme, is going to sue. The Supreme Court will hear the case.
The HEROES Act, which was passed after 9/11, made it possible for Biden to make the debt relief plan. When there were military conflicts or national emergencies, the government could cancel student loans. Biden used the law because he had said that the COVID-19 epidemic was a national emergency.
Under the president’s plan, borrowers could get up to $10,000 or $20,000 off their debt, depending on how much money they make and if they qualify for Pell Grants. Borrowers must live in $250,000 or make less than $125,000. Biden’s idea could wipe out the savings of 40 million people.
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