WASHINGTON – Three states, Missouri, Arkansas, and Nebraska, have filed a lawsuit with the Supreme Court, requesting an injunction to halt President Joe Biden’s student loan forgiveness program. The program, which would provide up to $20,000 in loan forgiveness for eligible borrowers, has been met with legal challenges since its announcement.
The states argue that the program is unconstitutional, claiming that the Biden administration lacks the authority to forgive student loans through executive action. They further allege that the program will unfairly burden their states by forcing them to compensate for lost revenue from student loan payments.
The lawsuit, filed on July 8, 2024, comes as the Supreme Court prepares to hear arguments on a separate case challenging the program’s legality. That case, brought by the Job Creators Network Foundation, focuses on whether the HEROES Act of 2003, which allows the Secretary of Education to modify student loan programs during national emergencies, grants the authority to forgive loans on this scale.
The Biden administration has defended the program, arguing that it is a necessary step to address the student loan crisis and provide relief to borrowers struggling with debt. The administration also asserts that the program is legal and within the scope of the HEROES Act.
The Supreme Court’s decision on this matter could have significant implications for the future of student loan forgiveness in the United States. If the Court rules in favor of the states, it could effectively block the program, leaving millions of borrowers with outstanding student loan debt. Conversely, a ruling in favor of the Biden administration would likely solidify the program and provide relief to a large segment of the population.
The court has not yet set a date for oral arguments in either case.
