Supreme Court Doubts Student Loan Forgiveness
The possibility of the Supreme Court accepting Biden’s student loan forgiveness plan are slim. His plan suggests forgiving up to $20,000 in federal student loan debt for borrowers.
When Biden announced the plan in August of 2022, a subset of Americans had their payments affected during the pandemic. Biden recognized how the pandemic made it hard for people to establish themselves because of student loans. Congress declined to pass the plan when proposed, but Biden passed it himself righteously. Some called his action problematic. Currently, Biden is facing Democratic pressure to muscle this plan through the lawmakers. Republicans and judiciary figures of the Supreme Court are skeptical of the proposal if Congress does not approve.
The Cost of Student Loan Forgiveness
“We take very seriously the idea of separation of powers and the power should be divided to prevent its abuse,” says Chief Justice John Roberts to the press.
During oral arguments yesterday, Roberts emphasized the plan would cost half-trillion dollars. Roughly, $400 billion over the next thirty years coming out of the federal deficit. The hefty price comes at the expense of creating wide impact, which is why he believed Congress would have approved the plan. However, one can also see how the concept of giving up a lump sum of money over time is controversial without the input of Congress.
Other conservative judge Brett Kavanaugh could see Biden’s push of the plan as an example of false use in emergency power. On the contrary, he can see how the program counters the economic effects of the pandemic.
Student debt has been a multigenerational issue that has increased with the rising cost of education. Debt is an investment that stays with graduates for decades. Statistics show people age 50 and older still carry debt. Alongside age, racial inequities distinguish the use of loans for graduates. Black graduates take out higher debt loads than other groups, making it hard to take full advantage of the degree.
Biden’s plan could be a big step if approved. A small address to the rooted problem of college costs.
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