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President Biden.
The loan forgiveness plan is one of most important promises made by President Biden since his campaign. Photo credit: Saul Loeb / GettyImages.

Supreme Court to hear arguments challenging student loan forgiveness plan by the end of February

Two lawsuits are preventing the Biden administration plan from moving on.

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Last August, the Biden administration launched its long-awaited student loan forgiveness plan, aiming to provide relief for the more than 40 million Americans who took out federal student loans to pay for their education. 

The plan initially announced the cancellation of up to $10,000 in federal loan debt and an additional $10,000 for students who had received a Pell Grant.   

Two lawsuits — Biden v. Nebraska and Department of Education v. Brown — were filed against the Biden administration shortly after the big announcement, blocking the program. 

The Supreme Court is scheduled to hear arguments related to the lawsuits against President Biden’s student loan forgiveness plan next week, on Feb. 28.

The challengers will have to prove that they have the right to sue the Biden administration by demonstrating that they are being harmed by the loan forgiveness plan. 

In Biden v. Nebraska, six states (Nebraska, Arkansas, Iowa, Kansas, Missouri and South Carolina) argue that the Biden plan harms them because they could lose out on tax revenue if individuals from their state are relieved of obligations to repay their student loans, according to Temple Now. On another hand, in Department of Education v. Brown, two individuals argue that they have already repaid their student loans in full and Biden’s plan wouldn’t benefit them.

If the Supreme Court determines that the challengers have no legal right to sue, both cases will be dismissed and the pause on the student loan forgiveness plan will be lifted. 

To learn more about each lawsuit and the process, click here. Temple Now heard from Mark Rahdert, professor of constitutional law at Beasley School of Law, about his insights on the situation and what could potentially happen. 

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