Supreme Court and U.S. District Court Reject Legal Bids Contesting the Biden-Harris Administration’s Student Debt Relief Program

Oct 21, 2022

Reading Time : 1 min

By: Francine E. Friedman, Kerry Mackenzie (Public Policy Specialist)

Justice Barrett, who was appointed by President Donald Trump, delivered a one-line dismissal in response to the Brown County Taxpayers Association’s petition alleging that the Biden-Harris administration’s debt cancellation program illegally infringed on Congress’s exclusive spending power. The case arrived at Justice Barrett’s desk as an emergency matter, which requires only a single Justice assigned to the region to rule on it after a lower court found that the group lacked standing to sue. The Biden-Harris administration responded that the program is authorized by the Higher Education Relief Opportunities for Students Act (H.R. 1412).

U.S. District Judge Henry Edward Autrey, a President George W. Bush appointee, made a similar ruling in a Missouri challenge to the program. Judge Autrey found that the legal objection, which was brought forth by six Republican attorneys general in Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina, did not propose the type of harm needed for the case to be heard in federal court. The attorneys general argued that the Student Debt Relief Plan would cause their states economic injuries, including lost tax revenue, but Judge Autrey found that these harms were not significant enough to warrant legal action.

Although more legal challenges to the program are expected, the legal system has thus far ruled in favor of the Biden-Harris administration’s authority to carry out its Student Debt Relief Plan, which recently launched its application. The administration has stated that they will not begin discharging debt until Sunday, October 23, in the hope that most court cases involving the program will be resolved.

Share This Insight

Previous Entries

Study Guide

2023-01-11

Building on its previous efforts to reduce the cost of federal student loans, the Department of Education (DOE), as directed by the Biden-Harris administration, proposed a new rule on Tuesday, January 10, that would reform the federal student loan repayment process. The draft rule recommends a new income-driven repayment (IDR) plan for federal student loan borrowers in addition to simplifying current repayment programs and shortening the timeline for forgiveness.

...

Read More

© 2024 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.