- The Supreme Court will decide whether the president’s compensation policy harms the judiciary or is an overreach of executive power.
- Legal experts say the Supreme Court may end the amnesty plan, due to many conservatives. Long before the president took action, Republicans criticized student loan forgiveness as a handout to wealthy graduates. They also said that the president does not have the power to waive consumer debt on his own without the permission of parliament.
- The merits of the Biden administration’s student loan cancellation plan are now in the Supreme Court.
This could be bad news for borrowers, legal and higher education experts say. Gregory Caldeira, a political science professor at Ohio State University, said, “Court conservatives are working hard to change the decisions of Congress and the president.” “I wouldn’t be surprised if the court struck down the law.”
Advanced learning expert Mark Kantrowitz agrees. Learn more about personal finance:
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“The Supreme Court of the United States is unlikely to block the president’s plan to forgive student loans,” Kantrowitz said.
The Supreme Court initiated the case after the United States Department of Justice filed an emergency petition asking the justices to lift the law and its amnesty plan issued by the US Court of Appeals. United States for the 8th Circuit, in St. Louis, at the request of six GOP-led states. The justices, who will decide whether the president’s bailout policy harms the plaintiffs or is an overreach, said they will hear oral arguments in February.
Decision to solve student loan problem
In August, President Joe Biden announced that the US Department of Education would offer $20,000 in student loan forgiveness to tens of millions of Americans. The nonpartisan Congressional Budget Office estimates the plan would cost about $400 billion.
Long before the president took action, Republicans criticized student loan forgiveness as a handout to wealthy graduates. They also said that the president does not have the power to waive consumer debt on his own without the permission of parliament.
Unexpectedly, a legal challenge ensued. At least six lawsuits were filed against the president’s plan.
“The benefit of the Supreme Court’s decision is that it will settle, now, all cases involving loan forgiveness,” said Dan Urman, a law professor at Northeastern University. 카지노사이트
Reasons why the Supreme Court can block pardons
For many reasons, Urman predicted that the Supreme Court would rule on Biden. He said Tory judges thought government agencies had too much power and “undermined the separation of powers”. Also, he said, the idea of loan forgiveness seems to contradict their idea of individual responsibility. Such a politically motivated decision, however, could damage public perception of the Supreme Court, Urman said.
“Taking away the pardon will add to the growing suspicion that conservative judges are voting for conservatives and liberals,” Urman said. Only 25% of Americans trust the Supreme Court, as a Gallup poll found this summer.
If the president’s plan is blocked, he added, it would be “another example, along with abortion and guns, of a court ruling that most Americans oppose.”
In a poll by The Economist and YouGov in August, 51% of respondents said they approved of Biden’s bailout plan. About 40% oppose the proposal.
“In the past, the Supreme Court often made decisions based on public opinion,” Urman said.
Debates on the Limitation of Presidential Powers
Despite the popularity of its debt relief plan, the Biden administration insists it is acting within the law, pointing to the Heroes Act of 2003 that gives the secretary of state the authority to cancel student loan regulations. in case of national emergency. The United States has been operating under a declaration of emergency since March 2020. However, GOP-led state attorneys general argued that the administration would not be able to use public health concerns to enact such a sweeping policy.
“The administration is once again invoking the COVID-19 pandemic to demonstrate its power beyond anything Congress could have imagined,” the lawyers wrote in a brief to the justices, pointing out that the Supreme Court has already ruled the country’s ban on deportation. ordered by the White House.