Whilst the looming presidential election has been dominating the headlines in the United States of America, one major story that has been rumbling on for a long time is Joe Biden‘s student loan forgiveness.
During the COVID-19 pandemic, the president decided to cancel up to 20,000 dollars in student debt for tens of millions of borrowers. This was popular among students and those who believe in access to education, but not among others.
At the end of February, the Supreme Court heard oral arguments for two of the legal challenges brought against the president’s plan.
It is therefore believed that a ruling should appear by early July, and thousands of borrowers will be incredibly anxious to hear whether they will be forced to pay the money back.
Higher education expert Mark Kantrowitz said to CNBC: “The court is likely to issue a decision before the end of June, probably on a Thursday.”
How expensive is Biden’s plan?
It is certainly a very big financial undertaking that the president is attempting to push through. It is believed that it will cost about 400 million dollars to forgive the student debt, making it one of the most expensive executive actions in the history of the USA.
The main crux of the ruling is that the Supreme Court must determine if the president really has the power to do this.
Biden‘s administration cites that the Heroes Act of 2003 grants the U.S. secretary of Education the authority to make changes related to student loans during national emergencies.
The opposition believes the law is being implemented incorrectly. “It is not an across-the-board, get-out-of-debt provision that an administration can invoke at will,” the six Republican-led states note in their lawsuit against the plan.