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Biden Admin To Ask High Court To Take Up Student Debt Plan

By 11/18/2022 9:50 AMNo CommentsBy YidInfo Staff

According to a legal filing on Thursday, the Biden administration intends to ask the Supreme Court to reinstate the president’s plan to cancel student loan debt.

The filing warns that if the plan is still stalled in court when loan payments are due to resume in January, Americans will experience financial hardship.

After two federal judges recently blocked Biden’s proposal, the Justice Department is battling to keep it in place.

The organization requests prompt action to overturn both judgments and enable the plan to go into force while litigated in the nation’s courts.

The administration revealed plans to appeal one of these decisions from a federal appeals court in St. Louis to the Supreme Court of the United States in a legal filing on Thursday.

It also states that it can appeal the second case if necessary.

The White House has stated that the plan will succeed, but even some of its supporters are skeptical of its prospects in front of a conservative Supreme Court that has curbed Biden’s authority in other ways, including in a June decision that limited the EPA’s ability to regulate power plant emissions.

According to Biden’s idea, everyone making less than $125,000 per year or a household making less than $200,000 will have their federal student debt canceled by $10,000.

Recipients of Pell Grants often exhibit greater financial need and are qualified for $10,000 in relief.

The administration stated in its submission that delaying the debt relief would force the nation into an “unnecessarily risky choice.”

Millions of Americans will be charged for debt that was supposed to be eliminated if it resumes student loan payments as scheduled on January 1.

However, extending the payment freeze will cost the government billions of dollars in missed revenue.

It expands on the administration’s points in other filings this week, saying that if the cancellation plan is not reinstated, many Americans won’t be able to make their student loan payments in January.

According to the Education Department, monthly payments for typical borrowers would increase by $200 to $300 under Biden’s proposal.

Rising default rates, which have climbed by an average of twentyfold in the wake of prior natural disasters, could result from the strain.

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