Climate crisis and migration: Greta Thunberg supports International Organization for Migration (IOM) over ‘life and death’ issueRead more United Nations (UN) Convenes Lake Chad Countries, Amid Growing Regional CrisisRead more 11 Disruptive Startups Selected for Cohort 3 of the Africa Startup Initiative Program (ASIP) Accelerator Program powered by Startupbootcamp AfricaRead more Africa Data Centres breaks ground on new Sameer facility in NairobiRead more Coffee with a human face: A union that improves livelihoods for Ugandan farmersRead more Trends Predicted to drive the retail industry in 2023Read more Vantage Capital exits Pétro IvoireRead more Afrobarometer charts path for Round 10 surveysRead more Unified communication and collaboration trends for 2023 (By David Meintjes)Read more 2023 starts with BIG IMPACT on Bizcommunity!Read more

Supreme Court to rule on Biden’s student debt cancellation

show caption
The Biden administration asked the US Supreme Court to hear a case about its plan to cancel student debt./AFP
Print Friendly and PDF

Dec 02, 2022 - 07:57 AM

WASHINGTON — The US Supreme Court agreed Thursday to rule on the legality of President Joe Biden’s landmark effort to cancel hundreds of millions of dollars in student debt.

The court will hear the case in February or March, according to a short statement it posted online.

In the meantime, it declined to lift a lower court ruling that has put the policy on hold for now.

The Democratic president, who has posed the measure as a boost for the middle class, announced in August that the federal government would forgive a huge portion of the often-crushing student debt held by Americans, erasing up to $20,000 per person.

In total, some 45 million borrowers nationwide owe a collective $1.6 trillion, according to the White House.

The plan, which would cost an estimated $400 billion over the next decade, was immediately challenged in court by several conservative states, which called the move an abuse of power ahead of the midterm elections.

Last month, a federal appeals court blocked the measure, and current and former college and university students who had already begun to apply for the relief were told their claims were on hold pending legal action.

The White House then asked the Supreme Court to take up the case, in hopes it would overturn the previous decision.

At the same time, the administration once again extended until June a moratorium on student debt payments, which was originally implemented at the start of the Covid-19 pandemic.

The White House welcomed the court’s decision to take up the case.

“This program is necessary to help over 40 million eligible Americans struggling under the burden of student loan debt recover from the pandemic and move forward with their lives,” press secretary Karine Jean-Pierre said.

“President Biden will keep fighting against efforts to rob middle-class families of the relief they need and deserve,” she said.

– An earlier version of this story misstated the cost estimate for the debt cancellation plan in paragraph six. It is $400 billion, not $400 million.

MAORANDCITIES.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.