The Supreme Court of the United States (SCOTUS) will hear a case that challenges the power of the federal government to cancel student loans without Congressional approval. This case comes after President Joe Biden issued an executive order in March 2021 that directed the Department of Education to review the potential for canceling student loan debt. The executive order was aimed to provide relief to the hundreds of thousands of Americans struggling to pay off their student loan debt.
The challengers to the cancellation of student loans argue that the federal government does not have the authority to cancel student loans without Congressional approval. They further claim that the executive order is a violation of the separation of powers doctrine. The challengers include a group of student loan creditors, a group of student loan servicers, and a group of universities.
The challengers are not challenging the executive order itself, but are arguing that the executive order violates the Administrative Procedure Act (APA). The APA requires that any rules made by the federal government must go through a public comment period and must be published in the Federal Register. The challengers argue that the executive order bypassed this process and was not published in the Federal Register. The Biden Administration has argued that the executive order is valid and that the federal government has the authority to cancel student loans. They cite the Higher Education Act of 1965, which allows the Department of Education to implement policies and regulations to help borrowers.
The outcome of this case could have major implications for the future of student loan debt in the United States. If the Supreme Court sides with the challengers, it could put a stop to the Biden Administration’s plans for student loan cancellation and could limit the federal government’s ability to implement executive orders in the future. If the Supreme Court sides with the Biden Administration, it could open the door for the federal government to cancel student loan debt without Congressional approval.
The Supreme Court is expected to hear oral arguments in the case in the coming weeks. The outcome of the case could have major implications for the future of student loan debt in the United States. It is unclear how the Supreme Court will rule, but the decision will have far-reaching implications for the future of student loan debt in the United States.