"Looking at the words of the statute, I think it is very clear that this would cover the actions that the secretary is contemplating here." The new law, "very much is entirely about the reduction in loan balance," said Persis Yu, deputy executive director at the Student Borrower Protection Center.
And they note that while the Education Department has crafted regulations that suggest relief should be provided on a case-by-case basis, the provision of the law at issue doesn't include that limiting language. Supporters of Biden's latest effort say the Higher Education Act more clearly lays out the administration's power to forgive debt. Counterargument: Advocates say the new law is clearer Some 26 million people applied for the relief and the administration estimated more than 40 million Americans might qualify. The debt cancellation was only available to borrowers with annual incomes less than $125,000 or from households earning $250,000 or less. The president's original proposal sought to forgive $10,000 for many federal student loan borrowers and up to $20,000 in debt relief for low-income Pell Grant recipients. President Joe Biden is joined by Education Secretary Miguel Cardona as he announces new actions to protect borrowers after the Supreme Court struck down his student loan forgiveness plan in the Roosevelt Room at the White House on June 30, 2023. "There's nothing in those statutes that contemplates something of that size, according to the court." "It's hard to see why the court would reach a different result under language that's very similar," Cary Coglianese, a law professor at the University of Pennsylvania, said of a broad debt relief program. Given that the Supreme Court's conservative justices smacked down the argument that the word "waive" allowed wholesale debt relief, some experts questioned whether a similarly sweeping program would win support under a different law that uses the word "compromise." Biden could arguably craft a narrower program that might survive scrutiny from federal courts but that might draw political criticism from liberals within his party. What happened? Race, religion and debt: Here are the biggest cases of the Supreme Court's 2022-2023 term The "compromise" language has previously been understood to give the department power to reduce loans on a case-by-case basis, not necessarily as a blanket authority to forgive debt. The HEROES Act empowered the secretary of education to "waive or modify" loan terms while the Higher Education Act permits the administration to "compromise" loans and forgive them in specific circumstances, such as for borrowers who become teachers. Hours after the decision landed, the president announced he would instead pursue debt relief under the Higher Education Act of 1965 − an option he described as "legally sound" but acknowledged would likely "take longer" because of the process required to adopt it. The Supreme Court ruled 6-3 last week that Biden overstepped his authority when he used a 2003 law called the HEROES Act to forgive up to $20,000 in student debt. WASHINGTON – President Joe Biden's backup plan for delivering student debt relief will likely face legal scrutiny for the same reason his initial plan was knocked down by the Supreme Court, several experts told USA TODAY, raising questions about the administration's ability to deliver on his campaign pledge without buy-in from Congress.
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