Capital B News: What We Know About Biden’s Student Loan Debt Relief Plan Ahead of the Supreme Court Hearings
Issues
This excerpt is from a piece that originally ran on February 27, 2023.
The Supreme Court can decide whether there is a legal right to sue the Biden administration, said Rakim Brooks, public interest appellate lawyer and president of the Alliance for Justice. If there is no legal right by the challengers, both cases against the federal government will be dismissed and the student debt forgiveness plan will advance.
However, if the Supreme Court strikes down Biden’s plan or determines it is unlawful, borrowers will restart payments. Brooks said he suspects more borrowers will stop making payments altogether or go into forbearance, meaning the borrower can stop making payments or make smaller payments for a certain time period. The loans, though, may continue to accrue interest while in forbearance. He also said the court will face backlash and advocates will look to Congress and the states to act.
“The debt crisis will just grow beyond this trillion dollar figure,” Brooks said.