John,
Nearly a year ago, President Biden unveiled his student loan cancellation plan to provide up to $20,000 in one-time debt relief for over 40 million Americans.
The plan was quickly blocked by Republican-appointed judges challenging its legality — leaving 26 million borrowers who had already applied, and 16 million who were already approved, in financial limbo.
Now, the Supreme Court is set to rule as soon as tomorrow on those challenges — just as the Department of Education is confirming that student loan interest and payments will resume at the end of the summer, under the terms of the debt-ceiling deal approved by President Biden and Congress.
As we brace for the ruling, can you add your name to our petition calling on Biden to take swift action and pursue an alternative legal pathway if SCOTUS strikes down the student-debt relief plan?
Sign the petition »
And if you’d like to stay up-to-date on any upcoming changes related to student loans and repayment, please sign up for text updates from WFP by texting EDU to 30403.
Many pundits predict it’s a forgone conclusion that the Supreme Court, with its 6-3 conservative majority, will rule against the Biden administration's student loan cancellation plan — but that is by no means certain.
Just last week, in a surprise 5-4 decision, we saw two conservative justices join their liberal counterparts to reject an attempt by Alabama lawmakers to racially gerrymander the state's congressional maps and dilute the power of Black voters.1
In other words — all hope is not lost, John.
And even if the Supreme Court does strike down Biden’s student debt relief plan, the administration could still pursue a “Plan B” by reissuing the student loan cancellation plan under a different legal authority.
Right now, Biden is relying on the HEROES Act — which allows the Secretary of Education to waive or modify loans during a national emergency, like the COVID-19 pandemic — as the legal basis for broad student debt cancellation.
But if the Supreme Court rules that Biden cannot implement his current proposal to cancel up to $20,000 in federal student loan debt, he could still re-establish the program under a provision of the Higher Education Act, which confers broad authority on the President, via the Secretary of Education, to “compromise, waive, or release any right, title, claim, lien, or demand” associated with federal student loans.2
Unlike the HEROES Act, however, the HEA Act does not rely on a national emergency like a pandemic to issue student loan cancellation, and even if challenged, it would likely be upheld by the courts.
So, John, whether or not the Supreme Court decides to keep this burden on a generation of borrowers — we believe that there is a viable, alternative pathway to cancel student debt. Regardless of the ruling, we won’t stop fighting until we have canceled it for everyone.
The Supreme Court is set to release more decisions as soon as tomorrow, and we'll be closely watching to see if the justices issue their opinions then.
Join us in urging President Biden to be ready with a ‘Plan B’, and prepare to take swift action to fulfill his campaign promise to cancel student debt.
Sign the petition »
And if you’d like to stay up-to-date on what’s next in the fight for student debt relief, sign up for text updates from WFP by texting EDU to 30403.
In solidarity, always,
Working Families Party
Source:
1. Supreme Court Orders Alabama to Redraw Racially Gerrymandered Congressional Maps, Democracy Now!, June, 09, 2023.
2. HEROES Act at Center of Debt-Relief Legal Fight, Inside Higher Ed, January, 09, 2023.