Student Debt-Relief Falters
Following both the support and criticism revolving around Biden’s $400 billion student debt-relief fund, there are finally updates regarding the legality of such a measure. After five months since it was introduced, the student loan forgiveness program has been met with some skepticism by the high court. Some justices of the Supreme Court questioned if Biden and the executive branch had the power to enact such a costly decision, citing the need for a separation of powers and the ability for Congress to vote on the issue. Justice Gorsuch even argued whether Education Secretary Miguel Cardona had the applicable knowledge to understand the economic impacts of approving such a large loan waiver.
The plan itself was introduced in August of last year, hoping to aid more than 40 million Americans with their outstanding student loan debt. However, a group of Republican state attorneys challenged the legality of the administration’s ability to set forth such a waiver without the approval of Congress. Nevertheless, other justices also inquired over the power of the states, claiming that the federal government’s ability to operate can become hindered by continuous disapprovals from the states. With differing views and opinions coming from the high court, the main question at large remains on whether the relief act had enough major national significance to be approved by Congress. Regardless, experts believed the student debt-relief plan, which was paused in the fall of last year, will most likely be overturned by the Supreme Court due to the presence of six conservative justices occupying the bench.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.