The Supreme Court denies another request to halt Biden’s federal student loan handout

The U.S. Supreme Court has just turned down another emergency request to stop President Joe Biden’s federal loan handout from taking effect, Reuters reports

This, however, doesn’t mean that Biden is in the clear. Far from it, in fact.

Background

Biden is attempting to unilaterally cancel a significant amount of federal student loan debt using nothing but executive action.

Under Biden’s plan, which is estimated to cost around $500 billion, eligible borrowers could get up to $10,000 in federal student loan debt canceled, or up to $20,000 if the borrower is a Pell Grant recipient. The borrower, to qualify, has to be making less than $125,00 per year if single or less than $250,000 per year if married.

The White House has indicated that, thus far, about 26 million Americans have applied for cancellation and that 16 million applications have been approved.

A lot of uncertainty remains, however, about whether the plan will ever be put into effect as it is facing multiple legal challenges.

An overview of the legal challenges

The most promising legal challenge to Biden’s student loan handout appears to be the one that has been brought by six Republican-led states.

The Republicans have already had some legal success as they have managed to get the Eighth U.S. Circuit Court of Appeals to grant a stay stopping Biden from implementing his plan while the court considers an appeal. The Republicans filed the appeal after the lower courts dismissed their case on technical grounds.

Meanwhile, multiple emergency requests have been sent to the U.S. Supreme Court asking the justices to stop Biden from effectuating his student loan handout while the handout’s legality is being litigated.

The High Court – specifically Amy Coney Barrett, who oversees the regions of the country from which the requests were sent – has now dismissed two such emergency requests. One was from the Brown County Taxpayers Association of Wisconsin and the other, which Barrett just denied on Friday, was from the Pacific Legal Foundation of Indiana.

What now?

We do not know why Barrett turned the emergency requests down as no explanations were provided. But, it is suspected that the requests were denied on technical grounds.

Whatever the case may be, Barrett’s decision has little to do with the legality of Biden’s student loan handout, which continues to be litigated in the courts. In other words, it is still very possible that the judiciary will put a stop to Biden’s plan.

Latest News