Global Law Experts Logo
Student Loan Relief Issue GLE News

Find a Global Law Expert

Specialism
Country
Practice Area
awardsr

Awards

Since 2010, the Global Law Experts annual awards have been celebrating excellence, innovation and performance across the legal communities from around the world.

Supreme Court Ruling on Student Loan Relief

posted 2 weeks ago

In June 2023, the US Supreme Court struck down the Biden administration’s proposed plan to cancel federal student loans/Student Loan Relief amounting to around $430 billion. The proposed debt forgiveness law sought to forgive student debt for tens of millions of college-educated Americans.

In the 63 majority decision written by Judge John Roberts, the Supreme Court held that the 2003 Higher Education Relief Opportunities for Students Act (HEROES) Act did not grant Biden’s administration authority to excuse hundreds of billions of student loans.

“The HEROES Act only allows the Secretary of Education to ‘modify and waive’ existing regulatory and statutory provisions applicable to student financial assistance programmes under the Education Act. It does not allow the secretary to rewrite the law to the extent of cancelling $430 billion in student loan principal,” noted Roberts in the loan forgiveness ruling.

Student Debt Relief Faces Challenges as Repayment Commences After More Than Three Years’ Suspension

During the COVID-19 pandemic, the Department of Education suspended student debt repayment in accordance with the HEROES Act. This suspension was legal as the Act allows the secretary of education to waive or modify provisions of debt forgiveness law in the event of a national emergency, war or other military activity.

However, in August 2022, before Biden declared the COVID-19 pandemic over, the Department of Education received a memorandum from the Office of the General Counsel advising that the HEROES Act allows the secretary to effectuate a programme for loan cancellation aimed at addressing the financial harm of the pandemic.

A few months later, the Department of Education invoked the Act to eliminate or reduce student debt for most borrowers in the country. In response, the states of Nebraska, Missouri, Iowa, Arkansas and South Carolina challenged this move, arguing that the loan forgiveness programme went beyond the department’s authority as delegated under the HEROES Act.

The Genesis and Determination of the Contention

During the 2020 campaign, Biden had promised to forgive student loan debt, but his effort to fulfil this promise was challenged in court. The Supreme Court ruling in Biden v Nebraska was issued in favour of six states that argued that the administration was overstepping its authority under the country’s debt forgiveness law.

Agreeing with the plaintiffs, Roberts wrote: “The modifications made by the Department of Education created a fundamentally different loan forgiveness programme that seeks to extend forgiveness to nearly every student borrower in the country.”

The student loan Supreme Court ruling came after an optimistic year for federal student loan borrowers who were promised by Biden in August 2022 that the government would cancel up to $20,000 of student debt for anyone who had received a Pell Grant to attend college, and up to $10,000 for the majority of the remaining borrowers.

The ruling left millions of borrowers devastated, as some would have seen their entire student loan cancelled under the new programme. When arriving at the student loan Supreme Court ruling, the justices applied the “major questions doctrine”, which holds that when Congress wants to delegate power to make decisions of vast political and economic significance to an administrative agency, it must expressly say so.

According to the country’s apex court, the political and economic significance of the secretary of education’s decision was staggering. Therefore, the justices found that Congress did not grant such power to the secretary of education.

The Cancellation of Student Loans Did Not Stop After the 2023 Ruling

After the Supreme Court ruled against Biden’s student loan forgiveness programme, his administration applied existing debt forgiveness laws to forgive more than $48 billion in student loans since the ruling. This was made possible through federal debt forgiveness programmes limited to specific categories of borrowers, including public-sector workers, borrowers who have made repayments for at least 20 years, as well as people defrauded by for-profit colleges.

According to CNN, The Biden administration has been granting student debt forgiveness through these programmes on a rolling basis since his inauguration. It has cancelled $127 billion of student loans for around 3.6 million Americans. This is the highest student loan forgiveness ever granted under any administration in the US, and is partly due to Biden’s efforts to correct past administrative errors made to borrowers’ accounts – and to temporarily expand loan relief programmes.

Around $42 billion has been cancelled for nearly 855,000 student borrowers enrolled in income-driven repayment plans. Since taking office, the administration has also forgiven $51 billion of federal student loans for around 715,000 borrowers through the Public Service Loan Forgiveness programme.

Additionally, Biden’s government cancelled $37 million worth of student debt for around 1,200 borrowers who attended the University of Phoenix under the borrower defence programme created by Congress decades ago. The university was found to have defrauded students by misleading them regarding job prospects.

Under Biden’s administration, The Department of Education has made significant progress in whittling down the backlog of borrower defence programme claims.

The Supreme Court Declined to Revive the Proposed Student Loan Relief Programme

In August 2024, The Supreme Court declined the government’s request to temporarily lift an Appeals Court ruling that frustrated its student debt relief programme. The administration sought to speed up loan forgiveness for borrowers and lower monthly payments for others.

Following the 2023 student loan Supreme Court ruling, the White House launched the Saving on a Valuable Education (SAVE) plan to implement an affordable student loan repayment programme. The policy would have seen the monthly college undergraduate loan payments reduce from 10% to only 5% of the borrower’s discretionary income.

The policy also aimed to pause payments by borrowers earning less than $32,000 annually until their income exceeded the amount. Furthermore, small loans would have qualified for forgiveness in 10 years, compared to 20–25 years.

Cumulatively, the administration estimated that the SAVE plan would cost $156 billion in taxpayers’ money. However, in April 2024, seven Republican-led states went to court to challenge the plan, arguing that the Department of Education had acted outside its power and authority by enacting the plan. In June, the US District Judge John Ross blocked the administration from implementing the plan on a preliminary basis.

The US Court of Appeals for the Eighth Circuit later blocked the student debt relief plan entirely, prompting the administration to file with the Supreme Court, which declined to revive the plan.

The Supreme Court to Review Ruling on Student Borrower Defence Case

Since taking office, the Biden administration has cancelled more than $17 billion of student debt for borrowers defrauded by for-profit colleges. The borrower defence rule has been in effect since 1994, with slight revisions in 2016, 2019 and 2022. The last revision was made by the Biden administration in an effort to clarify grounds for filing a claim.

In 2023, Career Colleges and Schools of Texas sued the administration over revising the borrower defence rule, claiming that it made it too easy for all students to engage in the claim process. According to the plaintiffs, a claimant can only file a borrower defence claim after default and after a debt collection suit is filed by the government. The trial court ruled in favour of the plaintiff, and its decision was upheld by the US Court of Appeals for the Fifth Circuit.

In January 2025, the Supreme Court agreed to consider whether the lower courts erred in finding that the Higher Education Act of 1965 does not permit borrowers to file a borrower defence claim before default.

 

Source: CNN

References:

NPR

Politico
For the latest updates on litigation law, check out the Global Law Experts News

Find the right Legal Expert for your business

The premier guide to leading legal professionals throughout the world

Specialism
Country
Practice Area
LAWYERS RECOGNIZED
0
EVALUATIONS OF LAWYERS BY THEIR PEERS
0 m+
PRACTICE AREAS
0
COUNTRIES AROUND THE WORLD
0

Join

who are already getting the benefits
0
Sign up for the latest legal briefings and news within Global Law Experts’ community, as well as a whole host of features, editorial and conference updates direct to your email inbox. Naturally you can unsubscribe at any time.

Online Casino Reviews

  • Freeroll Poker Tournaments For Real Money
  • Australian Online Casino Real Money
  • Best Slot App To Win Real Money
  • Online Casino Real Money Australia
  • Best Paying Online Pokies
  • Wizard Of Oz Online Slots
  • All Slots Casino Mobile
  • Best Online Poker App Real Money
  • Best Online Casino To Play Roulette
  • Is Online Casino Legal
  • Online Casino That Accepts Paypal
  • Play Roulette For Real Money
  • Slot Apps To Win Real Money
  • Real Money Slots Online Usa
  • Safe Online Casino
  • Wizard Of Oz Slots
  • Real Online Pokies Nz
  • Biggest Online Casino In The World
  • Online Casino Pay With Paypal
  • Online Casino That Accept Paypal
  • Online Casino Canada Real Money
  • 3 Card Poker Online Real Money
  • Online Slots Real Money Canada
  • Best Online Poker Sites For Real Money
  • Real Money Poker App Android Usa
  • How To Make Money From Online Casino Bonuses
  • Real Money Poker App Iphone
  • How To Play Blackjack Online For Real Money
  • Best Slots To Play
  • Top 10 Online Pokies
  • Best Poker Apps Real Money
  • Online Casino Legal
  • Best Payout Online Casino Uk
  • Win Money Online Slots
  • Online Poker Nj Real Money
  • How To Win Online Slots
  • Casino Gaming License
  • Play Real Pokies Online
  • Blackjack Sites For Real Money
  • Real Money Casino Games For Android
  • Best New Online Slots
  • Flaming 777 Slots Games
  • Online Blackjack With Live Dealers
  • How To Play Online Slots
  • Facebook Casino Games Real Money
  • Online Casino With No Minimum Deposit
  • How To Beat Online Slots
  • Online Casino License
  • The Big Payback Slots
  • Royal Vegas Online Casino Withdrawal
  • Online Casino Minimum Deposit 5
  • Online Pokies Real Money Australia
  • Las Vegas Usa Online Casino
  • Real Money Poker App Android
  • Wheel Of Fortune Slots
  • Game Of Thrones Slots
  • Online Poker Real Money Usa Legal
  • Best Online Casino European Roulette
  • Blackjack Online Real Money Paypal
  • Online Video Poker Real Money Usa
  • How To Create An Online Casino
  • Lucky Nugget Online Casino Mobile
  • How To Withdraw Money From Online Casino
  • Platinum Play Online Casino Download
  • Online Casino For Usa Players
  • Best Online Casino Usa Real Money
  • Online Roulette Real Money Usa
  • Best Real Money Poker Sites
  • Android Slots Real Money
  • How To Start An Online Casino Business
  • How To Start An Online Casino
  • How To Start An Online Gambling Site
  • Best Online Casino For Blackjack
  • Play Baccarat Online For Money
  • Online Pokies New Zealand
  • Best Slots To Play At Golden Nugget
  • Slots Of Vegas Online Casino
  • Best Online Pokies Site
  • How To Beat Online Roulette
  • New Zealand Online Pokies
  • Online Poker Mobile Real Money
  • Which Online Slots Payout The Most
  • Is Online Casino Legal In India
  • Online Casino Software For Sale
  • Best Online Casino For Craps
  • Hard Rock Casino Slots
  • Win Real Money Online Pokies
  • Online Casino With Highest Payout Percentage
  • Poker Apps With Real Money
  • Online Roulette Real Money Review
  • Full Tilt Poker Real Money
  • Online Casino 5 Dollar Minimum Deposit
  • Online Roulette With Real Money
  • Best Online Roulette For Real Money
  • I Migliori Casino Online Italiani
  • Best Payout Online Slots
  • How To Play Baccarat Online
  • Play Casino Card Game Online
  • Play Blackjack Online For Real Money
  • Best Paying Online Slots
  • Casino License Cost
  • Online Poker Real Money California
  • Safe Online Casino Australia
  • Online Roulette Australia Real Money
  • Online Poker Real Money Texas
  • Online Roulette Real Money Paypal
  • Online Slots Australia Real Money
  • Golden Nugget Online Casino Review
  • Casino Games To Win Real Money
  • Online Pokies Australia Real Money
  • Online Gambling Blackjack Real Money
  • Win Real Money Playing Slots
  • How To Win Roulette Online
  • Aristocrat Pokies Online Real Money
  • Hollywood Casino Online Slots
  • Play Online Keno For Real Money
  • What's The Best Online Casino
  • Triple Double Diamond Slots
  • Play Roulette Online With Real Money
  • Roulette Online For Real Money
  • Play Roulette Online Real Money
  • Best Online Pokies Real Money
  • Big Red Pokies Online
  • How To Win At Online Blackjack
  • What Is The Best Online Roulette Site
  • Real Money Online Pokies
  • Spin To Win Slots
  • Ruby Slots Online Casino
  • Wheel Of Fortune Online Casino
  • Spin Palace Flash Casino Online
  • Online Poker Real Money App
  • Online Casino With Paypal Deposit
  • How To Win At Online Roulette
  • Can You Win Real Money On Slot Apps
  • Is Ignition Casino Safe
  • Online Casino Blackjack Real Money
  • Online Casino Win Real Money Usa
  • How To Make Money Online Casino
  • Online Casino Real Money Reviews
  • Slot Games To Win Real Money
  • Jackpot City Online Casino Download
  • Online Pokies Real Money
  • Casino War Online Real Money
  • Online Casino No Minimum Deposit
  • Play Wheel Of Fortune Slots Online
  • Best Online Casino Game To Win Money
  • Online Casino Without Wagering Requirements
  • Online Slots For Real Money Usa
  • Legal Online Casino Australia
  • How Do Online Slots Work
  • Best Online Casino For Us Players
  • Online Play Casino Roulette Game
  • Online Blackjack Real Money Australia
  • Real Casino Games Real Money Online
  • Online Slot Machines Real Money Paypal
  • The Best Online Casino For Roulette
  • What Online Casino Pays Out The Most
  • Start Your Own Online Casino
  • Legal Online Casino
  • Online Live Roulette Casino Game
  • Playing Blackjack Online For Real Money
  • Online Penny Slots Real Money
  • Best Online Blackjack For Money
  • How To Win Online Roulette
  • Real Money Poker Sites Usa
  • Best Time To Play Slots
  • Online Keno For Real Money
  • Best Payout Online Slots Uk
  • Online Slots Real Money Reviews
  • Best Online Pokies Nz
  • What States Allow Online Gambling
  • Best Real Money Poker App
  • Online Slots To Win Real Money
  • Real Money Slots App Iphone
  • Jackpot City Flash Casino Online
  • Ignition Casino Legit
  • All Star Slots Casino
  • How To Play Online Casino
  • Real Time Gaming Slots
  • Online Video Poker Real Money
  • How To Play Roulette Online For Money
  • How To Win On Online Slots
  • Age Of Gods Slots
  • Online Real Casino Money Games
  • Best Online Slots To Play
  • Online Poker California Real Money
  • Is Jackpot City Casino Legit
  • How To Win At Online Slots
  • Play Poker For Real Money
  • Safe Online Pokies Australia
  • Best Way To Play Slots
  • How To Play Casino Online
  • Play Online Roulette For Money
  • Online Casino Australia Real Money
  • Which States Allow Online Gambling
  • Play Keno Online Real Money
  • How To Win Online Blackjack
  • Online Blackjack With Real Dealers
  • How To Open Online Casino
  • What Are The Best Online Slots To Play
  • Big Win Casino Slots
  • Spin Palace Online Casino Australia
  • Best Slots To Win On
  • Casino Slots Win Real Money
  • Slots Magic Online Casino
  • Blackjack Online For Real Money
  • Slot Machine App Win Real Money
  • Online Casino Not Paying Out
  • Slots That Pay Out Real Money
  • Online Pokies Australia Reviews
  • Online Casino Minimum Deposit 1
  • Jackpot City Online Casino Review
  • Live Dealer Baccarat Online Casino
  • Online Casino Apps For Android
  • Online Casino Paypal Deposit Australia
  • Online Casino With Live Dealer
  • How To Play Blackjack Online
  • Slots To Win Real Money
  • Wheel Of Fortune Online Slots
  • Play Quick Hit Slots Online
  • Can You Count Cards In Online Blackjack
  • Palace Of Chance Online Casino
  • How To Play Roulette Online
  • Good Slots To Play
  • Which Online Casino Pays Out The Most
  • Heart Of Vegas Casino Slots
  • Best Online Casino For Canadians
  • Australian Online Pokies Real Money
  • Mohegan Sun Online Casino Nj
  • Online Casino Live Games Best Uk
  • Best Online Casino Australia Reviews
  • Play Pokies Online Real Money
  • Best Online Casino For Usa Players
  • How To Win Online Casino
  • Play Blackjack For Real Money
  • Best Slots On Bovada
  • Online Keno Real Money Usa
  • Online Slots Real Money Paypal
  • Best Poker Sites For Real Money
  • Safe Casino Sites
  • The Best Online Slots
  • Play Keno For Real Money
  • Real Online Pokies Australia
  • Queen Of The Nile Slots
  • Mummys Gold Casino Online Casino
  • Play Keno Online For Real Money
  • Best Poker Websites Real Money
  • Lucky Nugget Online Casino Download
  • Best Online Casino For Roulette
  • Play Roulette For Money Online
  • Video Slots Mobile Casino
  • Best Time To Play Online Slots
  • Best Real Money Online Poker
  • Play Blackjack Online With Friends
  • Play Baccarat Online For Real Money
  • Is Silver Oak Casino Legit
  • Big Fish Casino Real Money
  • Can You Win Real Money On Caesars Slots
  • Game Of Thrones Slots Casino
  • Best Online Slots Payout Percentage
  • Play Online Pokies For Real Money
  • Play Pokies Online Australia
  • High 5 Casino Real Slots
  • The Best Online Pokies
  • Online Pokies That Accept Paypal
  • Heart Of Vegas Slots
  • How To Play Online Roulette
  • Best Poker App Real Money
  • Best Online Casino Fast Payout
  • Best Slots At Wind Creek Casino
  • Online Casino 10 Minimum Deposit
  • Play Roulette Online For Money
  • Us Real Money Poker Sites
  • How To Win In Online Casino
  • Best Online Pokies Australia Review
  • Where To Play Roulette Online For Real Money
  • How To Beat Online Casino Slot Machines
  • Highest Payout Online Slots
  • Best Paying Online Casino Slots
  • Golden Tiger Online Casino Review
  • Online Casino With Live Dealers
  • Play Roulette Online For Real Money
  • Best Slots To Play At Casino
  • Slot Machine Games Win Real Money
  • Most Popular Online Casino Games
  • Casino Slots App Real Money
  • Online Casino Real Money Canada
  • Online Real Money Pokies
  • Online Roulette Game Real Money
  • Online Casino Roulette Real Money
  • Best Place To Play Roulette Online
  • Online Casino Book Of Ra Paypal
  • Online Blackjack With Real Money
  • Play Online Blackjack For Real Money
  • Is There A Slot Machine App For Real Money
  • Royal Vegas Online Casino App
  • Best Casino Slots To Play
  • Most Popular Online Slots
  • Best Way To Win At Slots
  • Slots You Can Win Real Money
  • Play Roulette Online Real Money Usa
  • Online Casino Real Money Paypal
  • Online Casino Australia Legal
  • Treasures Of Troy Slots
  • Online Casino For Us Players
  • Where Can I Play Blackjack Online For Real Money
  • Online Casino Paypal Book Of Ra
  • Online Roulette For Real Money
  • Best Online Blackjack Real Money
  • Poker App For Real Money
  • Jackpot Magic Slots Facebook
  • Best Online Casino Real Money Usa
  • Best Online Casino New Zealand
  • The Four Kings Casino And Slots
  • How To Play Slots Online
  • Best Online Pokies Australia
  • Usa Online Slots Real Money
  • Real Money Casino Android App
  • Online Slot Machines That Pay Real Money
  • Online Pokies Real Money Nz
  • Online Pokies Real Money App
  • Play Igt Slots Online
  • Best Casino Slots To Win Money
  • Online Casino Business For Sale
  • Play N Go Slots
  • Poker Apps For Real Money
  • Lucky Slots Real Money
  • All Slots Online Casino
  • Best Online Pokies Real Money Australia
  • Online Pokies Win Real Money
  • Best Online Casinos For Roulette
  • Pay Slots For Real Money
  • Best Online Poker Real Money
  • Slots App Win Real Money
  • Play Online Roulette For Real Money
  • Is Ignition Casino Legit
  • Wheel Of Fortune Slots Online
  • Lotsa Slots Real Money
  • Video Poker Online Real Money
  • Online Slots Usa Real Money
  • Play Blackjack Online Real Money
  • Jackpot City Online Pokies
  • Video Slots Online Casino
  • Is 888 Casino Legit
  • Online Slot Games That Pay Real Money
  • Prepaid Visa Card Online Casino
  • How To Stop Online Gambling
  • Best Slots To Play Online
  • Online Blackjack For Real Money
  • Slot Apps For Real Money
  • Mobile Slots Win Real Money
  • Newsletter Sign Up

    About Us

    Global Law Experts is dedicated to providing exceptional legal services to clients around the world. With a vast network of highly skilled and experienced lawyers, we are committed to delivering innovative and tailored solutions to meet the diverse needs of our clients in various jurisdictions.

    Social Posts

    See More:

    Contact Us

    Stay Informed

    Join Mailing List

    GLE