Biden’s student loan relief plan stalled as appeals court considers challenge

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Danielle Douglas-Gabriel:

Oh, sure. They keep coming.

I think we now have seven prosecutions, active prosecutions, which are at some stage. A number of them were fired for showing up. But people are appealing these decisions and still trying to fight for relief.

I think the next one that would be wise to watch, especially if you’re an eligible borrower for this release, is a case out of Texas filed by two borrowers, one who has one of these private loans secured by the federal government that we talked about. who claims that they will not be able to take advantage of the program. So they file a complaint.

And the other borrower involved in this case is not eligible for the full $20,000 relief given to people who had federal undergraduate Pell grants. This is a special type of scholarship for low-income students. And these two borrowers say it’s kind of an arbitrary guideline that the Department of Education uses to decide who is eligible and who isn’t.

And, therefore, they are suing, among other reasons, such as the president does not have the power to do this, which is really at the heart of almost all of these lawsuits, challenging whether the – that the president can have the power to do it without Congressional action, going back to what we saw with the EPA case that went to the Supreme Court.

So I think a lot of people are really interested to see if any of these cases pass the standing issue. And if the justices actually consider the merits of their arguments, will they say, yes, the president’s authority he is using holds up or, no, Congress needs to be involved in a decision of this magnitude.

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