2024-09-22 17:13:00

: Bidens student-loan forgiveness plan could be blocked or delayed, expert warns

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MarketWatch
By Charles Passy

A warning for those anticipating at least a portion of their student loans being forgiven: Its not necessarily a done deal.

Mark Kantrowitz, a veteran expert on student financial aid and author of Who Graduates from College? Who Doesnt? spoke to that reality on Thursday at MarketWatchs Best New Ideas in Money festival. He said that legal challenges to the loan-forgiveness program announced by President Joe Biden in August are expected and could present a real obstacle.

If the challenges make it to the U.S. Supreme Court, the loan forgiveness is likely to be blocked. At the very least it will be delayed, Kantrowitz said.

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President Bidens plan calls for $10,000 in student-loan forgiveness for people earning up to $125,000, with $10,000 in additional loan relief for borrowers who received a Pell grant while in college.

Kantrowitz referred to a Supreme Court ruling that once declared that Congress doesnt hide elephants in mouseholes meaning a piece of policy that has significant economic or political implications has to be explicitly authorized by Congress. President Bidens forgiveness plan hasnt come through Congress, though the Biden administration has used the Higher Education Relief Opportunities for Students (HEROES) Act of 2003, which provided for loan forgiveness in certain situations, as a legal justification for the new plan.

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