Plan to cancel billions of dollars in federal student loan debt has been put on hold by two legal challenges from Republican-led states
The president’s plan to cancel billions of dollars in federal student loan debt has been put on hold by two legal challenges from Republican-led statesUS president Joe Biden. Picture: AI DRAGO/BLOOMBERG
Biden’s centrepiece plan, which makes good his 2020 campaign pledge to help debt-strapped younger Americans, has been put on ice by two legal challenges — one from six mostly Republican-led states who say the Biden administration overstepped its authority, and a separate Texas-based case that argues the public should have been allowed to comment.
The Heroes Act gave the secretary of education the authority to make changes to any provision of applicable student aid programme laws after the September 11 2001 attacks to alleviate hardships caused by national emergencies. Delinquency and default rates would spike above pre-pandemic levels without relief for lower-income borrowers, the brief said. Households were also facing “acute inflationary pressures”, one of the sources said.
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