04/12/2022

Biden administration asks Supreme Court to let student debt relief program go forward

The program promises to deliver up to $20,000 of debt relief for millions of borrowers, but has been on hold after lower courts blocked it nationwide.

About 26 million people had already applied to the program by the time a federal judge froze it on November 10, prompting the government to stop taking applications. No debt has been canceled thus far.

In court papers, Solicitor General Elizabeth Prelogar argued that “because borrowers who default on their student loans face severe financial consequences — including wage garnishment, long-term credit damage, and ineligibility for federal benefits — Congress specifically authorized the Secretary to waive or modify any applicable statutory or regulatory provision as he deems necessary to ensure that borrowers affected by a national emergency are not worse off in relation to their student loans.”

This story is breaking and will be updated.

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